FOREIGN ENTRY LIBERALIZATION AND EXPORT QUALITY: EVIDENCE FROM CHINA

Xinyu Hou, Yingying Shi, Puyang Sun

Research output: Journal PublicationArticlepeer-review

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 languageEnglish
Pages (from-to)205-219
Number of pages15
JournalContemporary Economic Policy
Volume39
Issue number1
DOIs
Publication statusPublished - Jan 2021

ASJC Scopus subject areas

  • Business, Management and Accounting (all)
  • Economics and Econometrics
  • Public Administration

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