Replication data for: WTO Accession and Performance of Chinese Manufacturing Firms

Principal Investigator(s): View help for Principal Investigator(s) Luhang Wang; Yifan Zhang; Loren Brandt; Johannes Van Biesebroeck

Version: View help for Version V1

Name	File Type	Size	Last Modified
20121266_data			08/02/2019 09:24:PM
LICENSE.txt	text/plain	14.6 KB	08/02/2019 05:24:PM

Project Citation:

Project Description

Summary: We examine the effects of trade liberalization in China on the evolution of markups and productivity of manufacturing firms. Although these dimensions of performance cannot be separately identified when firm output is measured by revenue, detailed price deflators make it possible to estimate the average effect of tariff reductions on both. Several novel findings emerge. First, cuts in output tariffs reduce markups, but raise productivity. Second, pro-competitive effects are most important among incumbents, while efficiency gains dominate for new entrants. Third, cuts in input tariffs raise both markups and productivity. We highlight mechanisms that explain these findings in the Chinese context.

Scope of Project

JEL Classification:
      L60 General
      P31 Socialist Enterprises and Their Transitions
      F13 Trade Policy • International Trade Organizations
      L25 Firm Performance: Size, Diversification, and Scope
      O14 Industrialization • Manufacturing and Service Industries • Choice of Technology
      D24 Production • Cost • Capital • Capital, Total Factor, and Multifactor Productivity • Capacity
      P33 International Trade, Finance, Investment, Relations, and Aid

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Published Versions

V1 [2019-08-02]

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DDI 2.5

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