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Trade liberalisation, quality upgrading, and export prices
VOX (2014)
  • Haichao Fan, Shanghai University of Finance and Economics
  • Yao Amber Li, Hong Kong University of Science and Technology
  • Stephen R. Yeaple
Abstract

Trade liberalisation has transformed the economies of many developing countries. This column presents evidence from China’s accession to the WTO. The authors find that high tariffs on imported inputs prevented Chinese firms from producing high-quality goods. When these tariffs were reduced, firms upgraded the quality of their products, entering more competitive foreign markets.

Keywords
  • trade liberalization,
  • tariff,
  • quality upgrading,
  • export price,
  • quality differentiation
Publication Date
September 6, 2014
Citation Information
Haichao Fan, Yao Amber Li and Stephen R. Yeaple. "Trade liberalisation, quality upgrading, and export prices" VOX (2014)
Available at: http://works.bepress.com/yaoamberli/4/