Abstract:The debate over trade liberalization mainly comes from doubts about its consequences on economic growth and the environment. This study directly investigates such question in the context of China and assesses several candidate explanations for the underlying channels using detailed county-level data from 1998 to 2008. We instrument county-level trade shocks by assembling the change in product-level tariffs and the county's industrial structure. It is found that tariff reduction on inputs promotes economic grow… Show more
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