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• W8131331 abstract "We examine the effects of trade liberalization in China on the evolution of markups and productivity of manufacturing firms. Although these dimensions of performance cannot be separately identified when firm output is measured by revenue, detailed price deflators make it possible to estimate the average effect of tariff reductions on both. Several novel findings emerge. First, cuts in output tariffs reduce markups, but raise productivity. Second, pro-competitive effects are most important among incumbents, while efficiency gains dominate for new entrants. Third, cuts in input tariffs raise both markups and productivity. We highlight mechanisms that explain these findings in the Chinese context. (JEL D24, F13, L25, L60, O14, P31, P33)" @default.
• W8131331 created "2016-06-24" @default.
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• W8131331 date "2017-09-01" @default.
• W8131331 modified "2023-10-16" @default.
• W8131331 title "WTO Accession and Performance of Chinese Manufacturing Firms" @default.
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• W8131331 doi "https://doi.org/10.1257/aer.20121266" @default.
• W8131331 hasPublicationYear "2017" @default.
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