Input trade liberalization and import switching: Evidence from Chinese firms

B-Tier
Journal: Review of International Economics
Year: 2019
Volume: 27
Issue: 4
Pages: 1002-1020

Authors (2)

Wei Tian (not in RePEc) Miaojie Yu (Liaoning University)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper investigates how input liberalization affects firm import behavior. Using comprehensive production and trade data of Chinese firms, the paper shows that firms switch import sources from developing countries to developed countries as Chinese input tariffs fall. This finding is evident for import value and import scope. The observation holds after excluding the possible influence of reducing processing trade. The paper further demonstrates that the mechanism can be attributed to quality upgrading and innovation led by input cost reductions. The analysis handles the possible endogeneity problem, and the findings are robust and significant to different empirical methodologies and measurements.

Technical Details

RePEc Handle
repec:bla:reviec:v:27:y:2019:i:4:p:1002-1020
Journal Field
International
Author Count
2
Added to Database
2026-01-29