Foreign entry liberalization and export quality: evidence from China

Hou, Xinyu, Shi, Yingying and Sun, Puyang (2020) Foreign entry liberalization and export quality: evidence from China. Contemporary Economic Policy . ISSN 1074-3529

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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.

Item Type: Article
Keywords: Foreign Entry Liberalization; Input-output Linkage; Manufacturing Firms; Export Quality; Export Price
Schools/Departments: University of Nottingham Ningbo China > Faculty of Business > Nottingham University Business School China
Identification Number:
Depositing User: Wu, Cocoa
Date Deposited: 12 Oct 2020 03:27
Last Modified: 12 Oct 2020 03:27

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