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Containing Chinese State-Owned Enterprises? : The Role of Deep Trade Agreements

Author

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  • Lefebvre,Kevin Jean-Rene
  • Rocha,Nadia
  • Ruta,Michele

Abstract

Regional trade agreements increasingly include provisions that regulate state-owned enterprises. This paper combines new information on the content of “deep” regional trade agreements and data on Chinese firm-level exports during 2000-11 to analyze the spillover effect of rules on state-owned enterprises on the intensive and extensive margins of Chinese state-owned enterprises’ trade. Rather than containing state capitalism, regional trade agreements regulating state-owned enterprises signed by Chinese trading partners with third countries increase exports and entry of Chinese state-owned enterprises as they gain a competitive edge in regulated markets. This spillover effect is robust to several extensions and is even stronger for agreements that include rules on subsidies and competition policy. This finding points to the need for commonly agreed multilateral rules to regulate state owned enterprises.

Suggested Citation

  • Lefebvre,Kevin Jean-Rene & Rocha,Nadia & Ruta,Michele, 2021. "Containing Chinese State-Owned Enterprises? : The Role of Deep Trade Agreements," Policy Research Working Paper Series 9637, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9637
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    References listed on IDEAS

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    More about this item

    Keywords

    International Trade and Trade Rules; Trade Policy; Competitiveness and Competition Policy; Competition Policy; Public Sector Administrative&Civil Service Reform; State Owned Enterprise Reform; Energy Privatization; Democratic Government; Economics and Finance of PublicInstitution Development; Privatization; De Facto Governments; Public Sector Administrative and Civil Service Reform;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F1 - International Economics - - Trade
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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