Trade Policy Uncertainty and Exports: Evidence from China's WTO Accession

Ling Feng, Zhiyuan Li () and Deborah Swenson ()

No 4780, CESifo Working Paper Series from CESifo

Abstract: To understand the effects of trade policy uncertainty on firm-level export decisions, we study firm-product data on Chinese exports to the U.S. in the years surrounding China’s 2001 WTO accession. Following predictions based on a model of heterogeneous firms, we provide empirical evidence that product-level tariff uncertainty reduction spurred a notable reallocation of export activities across firms, largely due to extensive margin entries and exits. In addition we document accompanying changes in prices and quality that coincided with this reallocation: firms that provided higher quality products at lower prices entered the U.S. export market, while firms that had higher prices and provided lower quality products exited.

JEL-codes: D81 F13 F14 F51 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (10)

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Related works:
Journal Article: Trade policy uncertainty and exports: Evidence from China's WTO accession (2017)
Working Paper: Trade Policy Uncertainty and Exports: Evidence from China’s WTO Accession (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_4780

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