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The Effects of Product Standards on Trade: Quasi‐Experimental Evidence from China

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  • Xuejun Wang
  • Xiaoqi Zhang
  • Dan Meng
  • Harry M. Kaiser

Abstract

Using China Compulsory Certification (CCC) as a case study, we investigate how compulsory certification schemes impact China's imports. A difference‐in‐difference approach is used with China customs data to measure the impact of CCC on imports. Our findings show that the CCC regulation increases China's market access for products requiring certification. The results show that the import‐promoting effects of CCC regulation are due to an increase in the intensive margin effect rather than to an increase in the extensive margin effect. We also find that product quality plays no significant mediation role in the effect of CCC regulation on China's imports.

Suggested Citation

  • Xuejun Wang & Xiaoqi Zhang & Dan Meng & Harry M. Kaiser, 2022. "The Effects of Product Standards on Trade: Quasi‐Experimental Evidence from China," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 55(2), pages 232-249, June.
    • Handle: RePEc:bla:ausecr:v:55:y:2022:i:2:p:232-249
    DOI: 10.1111/1467-8462.12458
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