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Input Trade Liberalization and the Export Duration of Products: Evidence from China

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  • Dinggen Zhou
  • Jingjing Yang
  • Mingyong Lai

Abstract

This paper introduces a quasi‐natural experimental framework into trade policy evaluation and reassesses China's trade liberalization through the survival of export products. We use propensity score matching and China's dual trade system to design a quasi‐natural experiment based on Chinese industrial enterprises, customs import and export, and tariff data over the period of 2000–2006; we then use survival analysis to study the impacts of China's trade liberalization on the export duration of manufacturing firms’ products. We find that the substantial reduction in import tariffs after China's accession to the World Trade Organization enhances the export duration of firm products, indicating that trade liberalization ameliorates the survival of export products. The promotion effects of tariff reduction on export duration are obviously stronger for core products than for noncore products.

Suggested Citation

  • Dinggen Zhou & Jingjing Yang & Mingyong Lai, 2019. "Input Trade Liberalization and the Export Duration of Products: Evidence from China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 27(6), pages 1-25, November.
    • Handle: RePEc:bla:chinae:v:27:y:2019:i:6:p:1-25
    DOI: 10.1111/cwe.12305
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    Cited by:

    1. Duan Lianjie, 2023. "Export Cutoff Productivity, Uncertainty and Duration of Waiting for Exporting," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 17(1), pages 1-19, January.
    2. Xiaoping Li & Shuzhou Peng & Wei‐Chiao Huang & Qian Zhou, 2022. "What Drives Chinese Firms' Export Sophistication? A Perspective from the Rise of Minimum Wages," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(2), pages 28-59, March.
    3. Yang, Shubo & Jahanger, Atif & Hossain, Mohammad Razib & Wang, Yanming & Balsalobre-Lorente, Daniel, 2023. "Enhancing export product quality through innovative cities: A firm-level quasi-natural experiment in China," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 462-478.
    4. Wen Yue & Qingxia Lin, 2023. "Export duration and firm markups: evidence from China," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-11, December.
    5. Qianhui Yu & Yanying Chen & Feng Helen Liang, 2021. "Housing Market Speculation and Firm Productivity: Evidence from China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(5), pages 148-174, September.

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