Trade Liberalization, Quality, and Export Prices
Haichao Fan (),
Yao Li () and
Additional contact information
Haichao Fan: School of International Business Administration, Shanghai University of Finance and Economics
No 2015-01, HKUST IEMS Working Paper Series from HKUST Institute for Emerging Market Studies
This paper presents theory and evidence from highly disaggregated Chinese data that tariff reductions induce exporters to upgrade product quality. The paper documents two stylized facts and develops a simple analytic framework to predict that import tariff reductions induce an incumbent importer/exporter to increase the quality of its exports and to raise its export price in industries where the scope for quality differentiation is large while to lower its export price in industries where the scope for quality differentiation is small. The predictions are consistent with the stylized facts based on Chinese data and robust to various estimation specifications.
Keywords: trade liberalization; tariff; quality upgrading; export price; quality differentiation (search for similar items in EconPapers)
JEL-codes: F12 F14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2015-01, Revised 2015-01
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (19) Track citations by RSS feed
Downloads: (external link)
http://iems.ust.hk/wp-content/uploads/2015/02/IEMSWP2015-01.pdf First version, 2015 (application/pdf)
Journal Article: Trade Liberalization, Quality, and Export Prices (2015)
Working Paper: Trade Liberalization, Quality, and Export Prices (2014)
Working Paper: Trade Liberalization, Quality, and Export Prices (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hku:wpaper:201501
Access Statistics for this paper
More papers in HKUST IEMS Working Paper Series from HKUST Institute for Emerging Market Studies Contact information at EDIRC.
Series data maintained by Carla Chan ().