Input prices, productivity, and trade dynamics: long‐run effects of liberalization on Chinese paint manufacturers.

We develop a dynamic model to analyze the impact of input tariff liberalization on input prices, trading decisions, and productivity. Although input tariffs directly affect input price benefits of importing, their impact on trade participation generates indirect benefits through productivity improve...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 53; no. 3; pp. 516 - 561
Autores principales: Grieco, Paul L. E., Li, Shengyu, Zhang, Hongsong
Formato: Artículo
Publicado: Wiley-Blackwell Sep2022
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Input prices, productivity, and trade dynamics: long‐run effects of liberalization on Chinese paint manufacturers.
      aug:
        au:
          Grieco, Paul L. E.
          Li, Shengyu
          Zhang, Hongsong
        affil:
          The Pennsylvania State University
          The University of New South Wales
          The University of Hong Kong
      su:
        China
        Prices
        Tariff
        Chinese painting
        Chinese corporations
        Imports
        Dynamic models
      sug:
        subj:
          Prices
          Tariff
          China
          Other federal government public administration
          Chinese painting
          Chinese corporations
          Imports
          Dynamic models
      keyword:
        direct importing
        dynamics
        imported intermediate inputs
        productivity
        direct importing
        dynamics
        imported intermediate inputs
        productivity
      ab: We develop a dynamic model to analyze the impact of input tariff liberalization on input prices, trading decisions, and productivity. Although input tariffs directly affect input price benefits of importing, their impact on trade participation generates indirect benefits through productivity improvements and complementarity between importing and exporting. To disentangle these effects, we separately measure importing's effect on input prices and productivity and examine Chinese paint manufacturers' reaction to input tariff liberalization. We find that a mild short‐term effect of tariff liberalization is amplified in the long run by induced trade participation, resulting in even higher productivity and lower input prices.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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