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Input Trade Liberalization and Export Product Scope: Evidence from China

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Listed:
  • Chunming Zhao
  • Qun Zhang

Abstract

This paper explores the impact of input trade liberalization on export product scope of firms in industries with different scope for product differentiation. Firm- and industry-specific tariffs are measured to reflect cost effect (intensive margin) and new input effect (extensive margin) of input tariff reductions. Using tariff data and product-level trade data for 2002-2006, we find that while firms in differentiated product scope expand export product lines greatly, firms in non-differentiated product sector do not expand export product scope significantly, which is robust to different definitions of varieties.

Suggested Citation

  • Chunming Zhao & Qun Zhang, 2016. "Input Trade Liberalization and Export Product Scope: Evidence from China," Business and Economic Research, Macrothink Institute, vol. 6(2), pages 118-132, December.
    • Handle: RePEc:mth:ber888:v:6:y:2016:i:2:p:118-132
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    References listed on IDEAS

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    More about this item

    Keywords

    Input trade liberalization; Product scope; Scope for product differentiation;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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