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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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Preprints, Working Papers, ...
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https://hal-sciencespo.archives-ouvertes.fr/hal-03460775
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Submitted on : Wednesday, December 1, 2021 - 10:23:14 AM
Last modification on : Friday, March 25, 2022 - 3:41:58 AM

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

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