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Quota restrictions and intra-firm reallocations: Evidence from Chinese exports to the US

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  • Upward, Richard
  • Wang, Zheng

Abstract

We study how Chinese textile and clothing firms adjusted the product structure of their exports to the US, as triggered by the termination of Multifiber Arrangement (MFA) quotas. We find that the removal of MFA quotas induced firms to expand their product scope while reducing the concentration on their core product. These effects are strong for domestic and foreign privately-owned firms, but insignificant for state-owned firms.

Suggested Citation

  • Upward, Richard & Wang, Zheng, 2016. "Quota restrictions and intra-firm reallocations: Evidence from Chinese exports to the US," Economics Letters, Elsevier, vol. 144(C), pages 71-74.
    • Handle: RePEc:eee:ecolet:v:144:y:2016:i:c:p:71-74
    DOI: 10.1016/j.econlet.2016.04.025
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    References listed on IDEAS

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    Cited by:

    1. Chen, Zhiyuan & Zhang, Jie & Zheng, Wenping, 2017. "Import and innovation: Evidence from Chinese firms," European Economic Review, Elsevier, vol. 94(C), pages 205-220.

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    More about this item

    Keywords

    Quota; MFA; Textile; Product scope; Product concentration;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment

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