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Does institutional quality matter for export product quality? Evidence from China

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  • Yumei Lin
  • Shanlang Lin
  • Xiaowan Wang
  • Jian Wu

Abstract

In this study, we discuss institutional quality and export product quality within a unified framework and explore the influence of institutional quality on product export quality empirically by matching regional-level data, Chinese Industrial Enterprises Database and the China Customs Import and Export Database in the period of 2000–2011. To reflect institutional quality as comprehensively as possible, we construct an index system including six institutional factors: financial service, open-door, government intervention, corruption, property rights protection and judicial fairness. To avoid the loss of information and minimize the endogeneity of reverse causality, we take advantage of microdata of enterprise in regression. The results show that, on average, the improvement of institutional quality has a positive impact on export product quality; Compared with processing trade, export product quality of general trading enterprises is more affected by local institutional quality. Among the various factors of institutional quality, corruption and judicial fairness have the greatest impact on export product quality.

Suggested Citation

  • Yumei Lin & Shanlang Lin & Xiaowan Wang & Jian Wu, 2021. "Does institutional quality matter for export product quality? Evidence from China," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 30(7), pages 1077-1100, October.
    • Handle: RePEc:taf:jitecd:v:30:y:2021:i:7:p:1077-1100
    DOI: 10.1080/09638199.2021.1936133
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    Cited by:

    1. Dreier, Silas & Liu, Wan-hsin, 2023. "Technological sophistication made in China? New insights from Germany's evaluation of COVID-19 antigen rapid tests," Kiel Working Papers 2261, Kiel Institute for the World Economy (IfW Kiel).
    2. Wenni Lei & Yuwei Luo, 2022. "Institutions Rule in Export Diversity," Sustainability, MDPI, vol. 14(18), pages 1-14, September.
    3. Ding Nan & Pomi Shahbaz & Shamsheer ul Haq & Muhammad Nadeem & Muhammad Imran, 2023. "The Economies’ Ability to Produce Diversified and Complex Goods to Meet the Global Competition: Role of Gross Value Chain, Institutional Quality, and Human Capital," Sustainability, MDPI, vol. 15(8), pages 1-17, April.
    4. Silas Dreier & Wan-Hsin Liu, 2023. "Technological sophistication made in China? – New insights from Germany's evaluation of COVID-19 antigen rapid tests," Economics Bulletin, AccessEcon, vol. 43(4), pages 1555-1564.
    5. Wei Qiu & Yinghua Li & Haitao Wu, 2023. "The role of direct financing on regional green development: inhibition or promotion?," Economic Change and Restructuring, Springer, vol. 56(5), pages 3665-3699, October.
    6. Dreier, Silas & Liu, Wan-hsin, 2023. "Technological sophistication made in China? New insights from Germany's evaluation of COVID-19 antigen rapid tests," KCG Working Papers 30, Kiel Centre for Globalization (KCG).

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