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Green Product Exports, Domestic Value Added and Trade Policies : Firm-Level Evidence from China

Author

Listed:
  • Kee, Hiau Looi
  • Taglioni, Daria
  • Xie, Enze

Abstract

This paper examines the roles of tariff and non-tariff measures in China’s meteoric rise as the world’s leading green product supplier. Evidence from customs transaction data from 2000 to 2016 shows that processing firms propelled the export surge, utilizing the expanding domestic material varieties due to trade liberalization benefiting their upstream suppliers. The substitution of domestic materials for imported materials raised the domestic value-added ratio of the processing firms and the exports of green products. A two-sector model rationalizes the empirical results. Trade policy liberalization, together with industrial policies, market scale, and synchronized global demand, contributed to China’s dominance.

Suggested Citation

  • Kee, Hiau Looi & Taglioni, Daria & Xie, Enze, 2025. "Green Product Exports, Domestic Value Added and Trade Policies : Firm-Level Evidence from China," Policy Research Working Paper Series 11240, The World Bank.
    • Handle: RePEc:wbk:wbrwps:11240
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    References listed on IDEAS

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    1. Taglioni, Daria & Kee, Hiau Looi, 2025. "It’s Not (Just) the Tariffs : Rethinking Non-Tariff Measures in a Fragmented Global Economy," Policy Research Working Paper Series 11236, The World Bank.

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