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Product standards and export quality: Micro evidence from China

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  • Hu, Cui
  • Lin, Faqin

Abstract

Using European Union’s decision on lighters on 11 May 2006 that only lighters which are child-resistant are placed on the market as a natural experiment, this paper firstly examines the impact of product standards on export quality causally. We use China’s HS-8 digit product level trade data and triple difference approach to analyze whether the product standards causally improve the product quality. We get the answer yes.

Suggested Citation

  • Hu, Cui & Lin, Faqin, 2016. "Product standards and export quality: Micro evidence from China," Economics Letters, Elsevier, vol. 145(C), pages 274-277.
  • Handle: RePEc:eee:ecolet:v:145:y:2016:i:c:p:274-277
    DOI: 10.1016/j.econlet.2016.06.034
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    References listed on IDEAS

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    1. Christian Broda & Joshua Greenfield & David Weinstein, 2006. "From Groundnuts to Globalization: A Structural Estimate of Trade and Growth," NBER Working Papers 12512, National Bureau of Economic Research, Inc.
    2. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    3. Fontagné, Lionel & Orefice, Gianluca & Piermartini, Roberta & Rocha, Nadia, 2015. "Product standards and margins of trade: Firm-level evidence," Journal of International Economics, Elsevier, vol. 97(1), pages 29-44.
    4. Amit K. Khandelwal & Peter K. Schott & Shang-Jin Wei, 2013. "Trade Liberalization and Embedded Institutional Reform: Evidence from Chinese Exporters," American Economic Review, American Economic Association, vol. 103(6), pages 2169-2195, October.
    5. Han, Jun & Liu, Runjuan & Zhang, Junsen, 2012. "Globalization and wage inequality: Evidence from urban China," Journal of International Economics, Elsevier, vol. 87(2), pages 288-297.
    6. Bas, Maria & Strauss-Kahn, Vanessa, 2015. "Input-trade liberalization, export prices and quality upgrading," Journal of International Economics, Elsevier, vol. 95(2), pages 250-262.
    7. Schuster, Monica & Maertens, Miet, 2015. "The Impact of Private Food Standards on Developing Countries’ Export Performance: An Analysis of Asparagus Firms in Peru," World Development, Elsevier, vol. 66(C), pages 208-221.
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    More about this item

    Keywords

    Product standards; Export quality; Triple difference;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration

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