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Product standards and export quality: Micro evidence from China

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  • Hu, Cui
  • Lin, Faqin

Abstract

Using European Union’s decision on lighters on 11 May 2006 that only lighters which are child-resistant are placed on the market as a natural experiment, this paper firstly examines the impact of product standards on export quality causally. We use China’s HS-8 digit product level trade data and triple difference approach to analyze whether the product standards causally improve the product quality. We get the answer yes.

Suggested Citation

  • Hu, Cui & Lin, Faqin, 2016. "Product standards and export quality: Micro evidence from China," Economics Letters, Elsevier, vol. 145(C), pages 274-277.
    • Handle: RePEc:eee:ecolet:v:145:y:2016:i:c:p:274-277
    DOI: 10.1016/j.econlet.2016.06.034
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    References listed on IDEAS

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    1. Fontagné, Lionel & Orefice, Gianluca & Piermartini, Roberta & Rocha, Nadia, 2015. "Product standards and margins of trade: Firm-level evidence," Journal of International Economics, Elsevier, vol. 97(1), pages 29-44.
    2. Lionel Fontagné & Gianluca Orefice & Roberta Piermartini & Nadia Rocha, 2015. "Product Standards and Margins of Trade: Firm-Level Evidence Product Standards and Margins of Trade: Firm-Level Evidence," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01299757, HAL.
    3. Maria Bas & Vanessa Strauss-Kahn, 2013. "Input-Trade Liberalization, Export Prices and Quality Upgrading," Working Papers hal-03460775, HAL.
    4. repec:hal:pseose:hal-01299757 is not listed on IDEAS
    5. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    6. Amit K. Khandelwal & Peter K. Schott & Shang-Jin Wei, 2013. "Trade Liberalization and Embedded Institutional Reform: Evidence from Chinese Exporters," American Economic Review, American Economic Association, vol. 103(6), pages 2169-2195, October.
    7. Broda, Christian & Greenfield, Joshua & Weinstein, David E., 2017. "From groundnuts to globalization: A structural estimate of trade and growth," Research in Economics, Elsevier, vol. 71(4), pages 759-783.
    8. Han, Jun & Liu, Runjuan & Zhang, Junsen, 2012. "Globalization and wage inequality: Evidence from urban China," Journal of International Economics, Elsevier, vol. 87(2), pages 288-297.
    9. Bas, Maria & Strauss-Kahn, Vanessa, 2015. "Input-trade liberalization, export prices and quality upgrading," Journal of International Economics, Elsevier, vol. 95(2), pages 250-262.
    10. Schuster, Monica & Maertens, Miet, 2015. "The Impact of Private Food Standards on Developing Countries’ Export Performance: An Analysis of Asparagus Firms in Peru," World Development, Elsevier, vol. 66(C), pages 208-221.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Xuejun Wang & Huiying Zhou & Dongmei Su, 2022. "Does the internationalisation of China's agri‐food standards affect export quality upgrading?—Evidence from firm‐product‐level data," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(4), pages 887-911, October.
    2. Jin Sun, 2021. "Do Higher‐Quality Regional Trade Agreements Improve the Quality of Export Products from China to “One‐Belt One‐Road” Countries?," Asian Economic Journal, East Asian Economic Association, vol. 35(2), pages 142-165, June.
    3. Sumaira Saeed & Miraj ul Haq & Arshad Ali Bhatti, 2024. "The Role of Moderators on Product Quality and Export Flows: The Case of Pakistan," Journal of Economic Impact, Science Impact Publishers, vol. 6(1), pages 27-36.
    4. Curzi, Daniele & Schuster, Monica & Maertens, Miet & Olper, Alessandro, 2020. "Standards, trade margins and product quality: Firm-level evidence from Peru," Food Policy, Elsevier, vol. 91(C).
    5. Cui Hu & Faqin Lin & Yong Tan & Yihong Tang, 2019. "How exporting firms respond to technical barriers to trade?," The World Economy, Wiley Blackwell, vol. 42(5), pages 1400-1426, May.
    6. 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.

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    More about this item

    Keywords

    Product standards; Export quality; Triple difference;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration

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