2016
DOI: 10.5296/ber.v6i2.9530
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Input Trade Liberalization and Export Product Scope: Evidence from China

Abstract: This paper explores the impact of input trade liberalization on export product scope of firms in industries with different scope for product differentiation. Firm-and industry-specific tariffs are measured to reflect cost effect (intensive margin) and new input effect (extensive margin) of input tariff reductions. Using tariff data and product-level trade data for 2002-2006, we find that while firms in differentiated product scope expand export product lines greatly, firms in non-differentiated product sector … Show more

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