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Preprints, Working Papers, ... Year : 2013

Input-Trade Liberalization, Export Prices and Quality Upgrading

Abstract

This paper explores the impact of input-trade liberalization on imported input and exported product prices. Using Chinese transaction data for 2000-2006, we capture causal effects between exogenous input tarif reductions and within firm changes in HS6 traded product prices. Identifcation is based on a quasi-natural experiment where some forms are exempt from paying tariffs and stand as a control group. Both imported input and export prices rise. The effect on export prices is specific to forms sourcing inputs from developed economies and exporting output to high-income countries. Results are consistent with a scenario within which forms exploit the input tariff cuts to access high-quality inputs in order to quality-upgrade their exports.
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Dates and versions

hal-03460775 , version 1 (01-12-2021)

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Maria Bas, Vanessa Strauss-Kahn. Input-Trade Liberalization, Export Prices and Quality Upgrading. 2013. ⟨hal-03460775⟩
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