Imported-Input Trade Liberalization and Firms' Export Performance in China: Theory and Evidence

Fan, Haichao; Lai, Edwin L.-C.; Qi, Han

doi:10.2139/ssrn.2767405

Cited by 1 publication

(2 citation statements)

References 25 publications

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“…Other papers look at the connection between the two trade activities by investigating the effect of input‐trade liberalization on firm export outcomes (Bas , Bas and Strauss‐Kahn , Fan et al. , Chevassus‐Lozza et al. ).…”

Section: Introductionmentioning

confidence: 99%

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The role of the gravity forces on firms’ trade

Navas

Serti

Tomasi

2020

Canadian J of Economics

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. This paper offers both a theoretical framework and empirical evidence on the role that the two gravity forces, namely market size and geographical distance, have indirectly through imports, on firms’ exports patterns. The model shows that sourcing from bigger and closer markets implies higher productivity gains that, in turn, increase firms’ ability to enter export market as well as their export value. Exploiting data on product‐ and destination‐level transactions of a large panel of Italian firms, the paper shows that, on average, the indirect effects of the gravity forces are about one third of their direct effects. Résumé. Rôle des forces de gravité sur le commerce des entreprises. Cet article offre à la fois un cadre théorique et des preuves empiriques sur le rôle que deux forces de gravité, à savoir la taille du marché et l’éloignement géographique, peuvent indirectement exercer sur les profils d’exportation des entreprise en fonction de leurs importations. Ce modèle montre que l’approvisionnement sur des marchés plus vastes et plus proches engendre de meilleurs gains de productivité, augmentant ainsi la capacité des entreprises à intégrer le marché d’exportation ainsi que la valeur de leurs exportations. En s’appuyant sur des données provenant d’un large panel d’entreprises italiennes et relatives aux transactions par type de produit et par destination, cet article montre qu’en moyenne, les effets indirects des forces de gravité représentent environ un tiers de leurs effets directs.

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Section: Introductionmentioning

confidence: 99%

“…Evidence for Italy has been provided by Castellani et al (2010) and LoTurco and Maggioni (2013). Other papers look at the connection between the two trade activities by investigating the effect of input-trade liberalization on firm export outcomes (Bas 2012, Bas and Strauss-Kahn 2015, Fan et al 2016, Chevassus-Lozza et al 2013.…”

Section: Introductionmentioning

confidence: 99%