Import competition and quality upgrading revisited: the role of overall protection

Niu, Zhaohui; Gunessee, Saileshsingh; Milner, Chris

doi:10.1007/s00181-021-02170-9

Cited by 1 publication

(1 citation statement)

References 17 publications

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“…However, the coefficient is quite small compared with the basic estimate, indicating that tariffs may not capture the total effect of import competition. This finding is consistent with Niu et al (2022), who point out that tariff is not an adequate measure for import competition. On the other hand, non‐tariff barriers are relatively important in imports when they study the impact of import competition on quality upgrading.…”

Section: Results and Analysessupporting

confidence: 92%

Import competition and sustainable development of global value chains: Evidence from China

Feng,

Tang

2023

Sustainable Development

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As the largest developing country and the second largest importer, China provides meaningful research on import competition and the global value chain (GVC). This article uses theoretical models and empirical tests to explore whether and how import competition affects the sustainable development of Chinese firms' GVCs. Moreover, we utilize China's entry into the WTO as a quasi‐natural experiment for import competition to further test the robustness of our findings. Ultimately, we find that import competition reduces the sustainable development of GVCs by decreasing the quality of imported intermediate inputs, which inhibits technology spillover, and by increasing the substitution of foreign inputs for domestic materials. Heterogeneous analyses show that import competition negatively affects ordinary trade and mixed trade firms while having no significant impact on processing trade firms. Moreover, this negative effect is especially significant for firms in eastern and central regions.

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Section: Results and Analysessupporting

confidence: 92%