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Trade Liberalisation, Product Complexity and Productivity Improvement: Evidence from Chinese Firms

In: Input Trade Liberalization in China

Author

Listed:
  • Miaojie Yu

    (China Center for Economic Research, Peking University)

  • Guangliang Ye

    (Hanqing Institute of Economics and Finance, Renmin University of China)

  • Baozhi Qu

    (China Merchants Group)

Abstract

This paper investigates the effect of trade liberalisation on Chinese firms’ productivity. In the past three decades, China has experienced dramatic trade liberalisation as well as productivity gains. The average unweighted tariffs decreased from around 55% in the early 1980s to about 13% in 2002. At the same time, China’s average annual increase in total factor productivity (TFP) in the first two decades since economic reform in 1978 was around 4%, although this pace seems to have slowed down after that (Zheng et al. in World Dev 37:874–888, 2009). It is interesting to see whether or not China’s trade liberalisation has boosted its productivity. Although economists have paid some attention to this issue, the research is far from conclusive and deserves further exploration.

Suggested Citation

  • Miaojie Yu & Guangliang Ye & Baozhi Qu, 2023. "Trade Liberalisation, Product Complexity and Productivity Improvement: Evidence from Chinese Firms," Contributions to Economics, in: Input Trade Liberalization in China, pages 37-64, Springer.
    • Handle: RePEc:spr:conchp:978-981-99-7599-0_3
    DOI: 10.1007/978-981-99-7599-0_3
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