FOREIGN ENTRY LIBERALIZATION AND EXPORT QUALITY: EVIDENCE FROM CHINA

Xinyu Hou; Yingying Shi; Puyang Sun

doi:10.1111/coep.12498

FOREIGN ENTRY LIBERALIZATION AND EXPORT QUALITY: EVIDENCE FROM CHINA

Xinyu Hou
, Yingying Shi^*
, Puyang Sun

^*Corresponding author for this work

Department of Finance, Accounting and Economics

Research output: Journal Publication › Article › peer-review

8 Citations (Scopus)

254 Downloads (Pure)

Abstract

This paper examines the impact of foreign entry deregulation in China on the export price and quality of manufacturing firms through input–output linkage. We create a unique dataset describing the extent of regulatory control over foreign entry across approximately 900 industries covering all primary, manufacturing and services sectors. Results suggest foreign entry deregulation encourages firms to improve product quality and increase export prices. Deregulation in the manufacturing sectors has more impact on downstream export price and quality, compared with services sectors. Moreover, firms having larger imported inputs benefit more from foreign entry deregulation. These effects are robust to alternative specifications. (JEL F1, D2, O2).

Original language	English
Pages (from-to)	205-219
Number of pages	15
Journal	Contemporary Economic Policy
Volume	39
Issue number	1
DOIs	https://doi.org/10.1111/coep.12498
Publication status	Published - Jan 2021

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This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 17 Partnerships for the Goals

ASJC Scopus subject areas

General Business,Management and Accounting
Economics and Econometrics
Public Administration

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10.1111/coep.12498

Foreign Entry Liberalization and Export QualityAccepted author manuscript, 688 KBLicence: CC BY

Cite this

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title = "FOREIGN ENTRY LIBERALIZATION AND EXPORT QUALITY: EVIDENCE FROM CHINA",

abstract = "This paper examines the impact of foreign entry deregulation in China on the export price and quality of manufacturing firms through input–output linkage. We create a unique dataset describing the extent of regulatory control over foreign entry across approximately 900 industries covering all primary, manufacturing and services sectors. Results suggest foreign entry deregulation encourages firms to improve product quality and increase export prices. Deregulation in the manufacturing sectors has more impact on downstream export price and quality, compared with services sectors. Moreover, firms having larger imported inputs benefit more from foreign entry deregulation. These effects are robust to alternative specifications. (JEL F1, D2, O2).",

author = "Xinyu Hou and Yingying Shi and Puyang Sun",

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AU - Shi, Yingying

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PY - 2021/1

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N2 - This paper examines the impact of foreign entry deregulation in China on the export price and quality of manufacturing firms through input–output linkage. We create a unique dataset describing the extent of regulatory control over foreign entry across approximately 900 industries covering all primary, manufacturing and services sectors. Results suggest foreign entry deregulation encourages firms to improve product quality and increase export prices. Deregulation in the manufacturing sectors has more impact on downstream export price and quality, compared with services sectors. Moreover, firms having larger imported inputs benefit more from foreign entry deregulation. These effects are robust to alternative specifications. (JEL F1, D2, O2).

AB - This paper examines the impact of foreign entry deregulation in China on the export price and quality of manufacturing firms through input–output linkage. We create a unique dataset describing the extent of regulatory control over foreign entry across approximately 900 industries covering all primary, manufacturing and services sectors. Results suggest foreign entry deregulation encourages firms to improve product quality and increase export prices. Deregulation in the manufacturing sectors has more impact on downstream export price and quality, compared with services sectors. Moreover, firms having larger imported inputs benefit more from foreign entry deregulation. These effects are robust to alternative specifications. (JEL F1, D2, O2).

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IS - 1

ER -

FOREIGN ENTRY LIBERALIZATION AND EXPORT QUALITY: EVIDENCE FROM CHINA

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