2018
DOI: 10.1016/j.jinteco.2018.05.003
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Tariff scares: Trade policy uncertainty and foreign market entry by Chinese firms

Abstract: We estimate how a rise in uncertainty about future tariff rates impacts firm decisions to enter into and exit from export markets. Using Chinese customs transactions between 2000-2009, we exploit timevariation in product-level trade policy and find that Chinese firms are less likely to enter new foreign markets and more likely to exit from established foreign markets when their products are subject to increased trade policy uncertainty. Our analysis is based on the phenomenon of "tariff echoing"-after a tariff… Show more

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Cited by 146 publications
(112 citation statements)
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References 56 publications
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“…For example, Pierce and Schott () demonstrate that a change in U.S. policy uncertainty had a statistically significant impact on the decline of U.S. manufacturing employment. Several other studies find a sizable impact of China’s WTO accession on the growth of China’s exports (Crowley, Meng, & Song, ; Feng et al, ; Handley & Limão, ).…”
Section: Decomposing the Employment Effectsmentioning
confidence: 94%
“…For example, Pierce and Schott () demonstrate that a change in U.S. policy uncertainty had a statistically significant impact on the decline of U.S. manufacturing employment. Several other studies find a sizable impact of China’s WTO accession on the growth of China’s exports (Crowley, Meng, & Song, ; Feng et al, ; Handley & Limão, ).…”
Section: Decomposing the Employment Effectsmentioning
confidence: 94%
“…Researchers and policymakers have considered several methods for addressing the measures taken by the United States. For instance, the manufacturing employment in the Rust Belt and elsewhere in the United States has been decimated by the rise of China as an industrial power and export-driven economy (Crowley et al, 2016). It often argues that the "bad" trade deals by previous administration have been killing manufacturing jobs at the United States and depressing the wages of American workers (Autor, Dorn, and Hanson, 2016).…”
Section: The Impact Of Trade On Jobs Wages and Inequalitymentioning
confidence: 99%
“…To z kolei, według ostatnich wyników badań, ogranicza decyzje o wchodzeniu na zagraniczne rynki (por. Crowley, Song, Meng, 2016oraz Handley, Limao, 2016.…”
Section: Strukturalne Czynniki Spowolnienia Handluunclassified