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Migration, tariffs, and China's export surge

Author

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  • Liu, Chen
  • Ma, Xiao

Abstract

We build a multi-sector spatial general equilibrium model that features heterogeneous firms' and workers' location choices to account for China's export surge between 1990 and 2005 using three policy changes: China's import tariffs, tariffs imposed against China's exports, and barriers to internal migration in China. We find that tariff and migration policies jointly accounted for 30% of China's export growth. We also find evidence that suggests a positive interaction effect of tariff and migration policies. As migration reform prepared the country to become more export oriented, China enjoyed faster export growth after opening to trade than it would have otherwise.

Suggested Citation

  • Liu, Chen & Ma, Xiao, 2023. "Migration, tariffs, and China's export surge," Journal of International Economics, Elsevier, vol. 140(C).
    • Handle: RePEc:eee:inecon:v:140:y:2023:i:c:s0022199622001283
    DOI: 10.1016/j.jinteco.2022.103696
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    More about this item

    Keywords

    International trade; Tariffs; Labor-market adjustments; Migration; Firm location choices;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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