Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/96869
Authors: 
Feng, Ling
Li, Zhiyuan
Swenson, Deborah L.
Year of Publication: 
2014
Series/Report no.: 
CESifo Working Paper 4780
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: 
F13
F14
D81
F51
Document Type: 
Working Paper

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