Worker Training, Firm Productivity, and Trade Liberalization: Evidence from Chinese Firms

Author(s):  
Miaojie Yu
2013 ◽  
Vol 103 (6) ◽  
pp. 2169-2195 ◽  
Author(s):  
Amit K Khandelwal ◽  
Peter K Schott ◽  
Shang-Jin Wei

If trade barriers are managed by inefficient institutions, trade liberalization can lead to greater-than-expected gains. We examine Chinese textile and clothing exports before and after the elimination of externally imposed export quotas. Both the surge in export volume and the decline in export prices following quota removal are driven by net entry. This outcome is inconsistent with a model in which quotas are allocated based on firm productivity, implying misallocation of resources. Removing this misallocation accounts for a substantial share of the overall gain in productivity associated with quota removal. (JEL F13, F14, L67, O14, O19, P23, P33)


Author(s):  
Matteo Fiorini ◽  
Marco Sanfilippo ◽  
Asha Sundaram

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