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Foreign Entry Liberalization And Export Quality: Evidence From China

Author

Listed:
  • Xinyu Hou
  • Yingying Shi
  • Puyang Sun

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)

Suggested Citation

  • Xinyu Hou & Yingying Shi & Puyang Sun, 2021. "Foreign Entry Liberalization And Export Quality: Evidence From China," Contemporary Economic Policy, Western Economic Association International, vol. 39(1), pages 205-219, January.
    • Handle: RePEc:bla:coecpo:v:39:y:2021:i:1:p:205-219
    DOI: 10.1111/coep.12498
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    References listed on IDEAS

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    Cited by:

    1. Ercan Yasar & Güray Akalin & Sinan Erdogan & Samuel Asumadu Sarkodie, 2022. "Trading Kuznets curve: empirical analysis for China," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(3), pages 741-768, August.
    2. Zhoufu Yan & Shuntian Sui & Fangwei Wu & Li Cao, 2023. "The Impact of Outward Foreign Direct Investment on Product Quality and Export: Evidence from China," Sustainability, MDPI, vol. 15(5), pages 1-13, February.

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    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • D2 - Microeconomics - - Production and Organizations
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

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