Foreign entry liberalization and export quality: evidence from China

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 primar...

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Main Authors: Hou, Xinyu, Shi, Yingying, Sun, Puyang
Format: Article
Language:English
Published: Blackwell Publishing Inc. 2020
Subjects:
Online Access:https://eprints.nottingham.ac.uk/63169/
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author Hou, Xinyu
Shi, Yingying
Sun, Puyang
author_facet Hou, Xinyu
Shi, Yingying
Sun, Puyang
author_sort Hou, Xinyu
building Nottingham Research Data Repository
collection Online Access
description 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.
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spelling nottingham-631692020-10-12T03:27:14Z https://eprints.nottingham.ac.uk/63169/ Foreign entry liberalization and export quality: evidence from China Hou, Xinyu Shi, Yingying Sun, Puyang 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. Blackwell Publishing Inc. 2020-09-06 Article PeerReviewed application/pdf en cc_by https://eprints.nottingham.ac.uk/63169/1/Foreign%20Entry%20Liberalization%20and%20Export%20Quality.pdf Hou, Xinyu, Shi, Yingying and Sun, Puyang (2020) Foreign entry liberalization and export quality: evidence from China. Contemporary Economic Policy . ISSN 1074-3529 Foreign Entry Liberalization; Input-output Linkage; Manufacturing Firms; Export Quality; Export Price https://doi.org/10.1111/coep.12498 doi: 10.1111/coep.12498 doi: 10.1111/coep.12498
spellingShingle Foreign Entry Liberalization; Input-output Linkage; Manufacturing Firms; Export Quality; Export Price
Hou, Xinyu
Shi, Yingying
Sun, Puyang
Foreign entry liberalization and export quality: evidence from China
title Foreign entry liberalization and export quality: evidence from China
title_full Foreign entry liberalization and export quality: evidence from China
title_fullStr Foreign entry liberalization and export quality: evidence from China
title_full_unstemmed Foreign entry liberalization and export quality: evidence from China
title_short Foreign entry liberalization and export quality: evidence from China
title_sort foreign entry liberalization and export quality: evidence from china
topic Foreign Entry Liberalization; Input-output Linkage; Manufacturing Firms; Export Quality; Export Price
url https://eprints.nottingham.ac.uk/63169/
https://eprints.nottingham.ac.uk/63169/
https://eprints.nottingham.ac.uk/63169/