The impact of tariff reductions on firm dynamics and productivity in China: Does market-oriented transition matter?

2017 ◽  
Vol 45 ◽  
pp. 168-194 ◽  
Author(s):  
Qilin Mao ◽  
Bin Sheng
Keyword(s):  
Firm Dynamics ◽  
The Impact ◽  
Tariff Reductions

scholarly journals Pakistan’s Experience with the Pakistan–China FTA: Lessons for CPEC

2017 ◽  
Vol 22 (Special Edition) ◽  
pp. 1-24 ◽  
Author(s):  
Theresa Theresa ◽  
Nida Jamil ◽  
Azam Chaudhry
Keyword(s):  
Free Trade Agreement ◽  
Market Access ◽  
Value Added ◽  
Trade Agreement ◽  
Policy Implications ◽  
Firm Level ◽  
Trade Data ◽  
Chinese Markets ◽  
The Impact ◽  
Tariff Reductions

As Pakistan enters the CPEC era, there is a sense of optimism as well as concern in the country, given the uncertain economic impact of this major collaboration between China and Pakistan. Using firm-level and trade data, we empirically test the impact of the 2006 free trade agreement (FTA) between the two countries on the productivity, size and value added of potentially affected Pakistani firms. These results have important policy implications for CPEC initiatives. We start with a difference-in-difference analysis, comparing trends in those sectors in Pakistan made more vulnerable by tariff reductions on Chinese goods relative to sectors for which the tariff did not change significantly. Next, we examine those sectors in Pakistan that were given greater access to Chinese markets through reductions in the Chinese tariff on Pakistani goods relative to sectors for which market access remained roughly the same. In the sectors made more vulnerable by reductions in Pakistani tariffs on Chinese goods, imports to Pakistan have risen, while productivity, value added and value added per worker have fallen relative to other sectors since the FTA. In the sectors for which Pakistan gained access to Chinese markets, exports and employment have risen, but productivity and value added have fallen relative to other sectors since the FTA.

Distorted Dynamics: The Impact of Policies on Firm Dynamics and Job Growth

2014 ◽  
pp. 49-80
Author(s):  
Marc Schiffbauer ◽  
Abdoulaye Sy ◽  
Sahar Hussain ◽  
Hania Sahnoun ◽  
Philip Keefer ◽  
...  
Keyword(s):  
Firm Dynamics ◽  
Job Growth ◽  
The Impact

Japanese Beef Tariffs: Beef Quality, Farm Programs, and Producer Compensation

2019 ◽  
Vol 17 (2) ◽  
Author(s):  
Andrew Schmitz ◽  
James L. Seale ◽  
Claudine Chegini
Keyword(s):  
Complete Removal ◽  
Tariff Reduction ◽  
Farm Policy ◽  
Welfare Gains ◽  
Price Supports ◽  
Farm Programs ◽  
Partnership Agreement ◽  
The Impact ◽  
Tariff Reductions ◽  
Farm Program

Abstract Beef is a highly protected commodity in Japan and the number of studies on the impact of beef import tariff reduction has increased in light of the controversy over the Trans-Pacific Partnership Agreement (TPPA), in which the gains from freer trade in beef was a major point of discussion. We estimate that an 11% tariff reduction for Japanese imports of both Australian and U.S. beef can generate a net welfare gain to Japan of between US$92 million and US$915 million. These results are not overly sensitive to whether beef is treated as homogeneous or heterogeneous. A more significant determinant of welfare gains is the extent to which farm policy would be decoupled along with tariff reductions. Under a decoupled farm program, producer welfare can remain unchanged while the net gain from freer trade is identical to that of complete removal of price supports with no compensation to producers. Therefore, negotiators for U.S. and Australian beef interests should lobby for both lowered tariffs and a decoupling of domestic farm policy within the importing country. This seems to have been the case as Japan was willing to move toward a more decoupled farm program under the TPPA.

scholarly journals Economic Reform, Labour Markets and Informal Sector Employment: Evidence from India

Economies ◽  
2019 ◽  
Vol 7 (2) ◽  
pp. 55
Author(s):  
Nihar Shembavnekar
Keyword(s):  
Economic Reform ◽  
Informal Sector ◽  
Developing Economies ◽  
Market Competition ◽  
Evidence Base ◽  
Labour Markets ◽  
Manufacturing Enterprises ◽  
Employment Impact ◽  
The Impact ◽  
Tariff Reductions

Theory and economic intuition suggest that domestic institutions influence the employment impact of economic reform, but the evidence base is thin. This paper seeks to address this by examining the extent to which differences in regional labour market flexibility shaped the impact of unanticipated economic reforms on employment in informal (unregistered) manufacturing enterprises in India (1990–2001). It employs a difference-in-differences strategy and finds that tariff reductions are not associated with significant employment shifts in informal enterprises, a finding that may be attributable to the fact that these enterprises rarely engage in international trade. However, on average and ceteris paribus, delicensing (FDI reform) is associated with statistically significant increases (increases) in informal employment and informal enterprise numbers in inflexible (flexible) labour markets. There is some evidence that the delicensing effect is attributable to increases in product market competition in delicensed industries. However, the channel underlying the result associated with FDI reform is less clear. In light of the persistent primacy of the informal sector in India and other developing economies, these findings have substantial policy relevance.

scholarly journals Optimal Regulation in the Presence of Reputation Concerns *

2014 ◽  
Vol 130 (1) ◽  
pp. 415-464 ◽  
Author(s):  
Andrew Atkeson ◽  
Christian Hellwig ◽  
Guillermo Ordoñez
Keyword(s):  
Firm Dynamics ◽  
Total Production ◽  
Entry And Exit ◽  
Free Entry ◽  
Spot Prices ◽  
The Public ◽  
Equilibrium Prices ◽  
Random Growth ◽  
The Impact

Abstract In all markets, firms go through a process of creative destruction: entry, random growth, and exit. In many of these markets there are also regulations that restrict entry, possibly distorting this process. We study the public interest rationale for entry taxes in a general equilibrium model with free entry and exit of firms in which firm dynamics are driven by reputation concerns. In our model firms can produce high-quality output by making a costly but efficient initial unobservable investment. If buyers never learn about this investment, an extreme “lemons problem” develops, no firm invests, and the market shuts down. Learning introduces reputation incentives such that a fraction of entrants do invest. We show that if the market operates with spot prices, entry taxes always enhance the role of reputation to induce investment, improving welfare despite the impact of these taxes on equilibrium prices and total production.

scholarly journals Analysis of the Role of Tariff Concessions in East Asia

2019 ◽  
Vol 13 (2) ◽  
pp. 141-167
Author(s):  
Kenichi Kawasaki ◽  
Badri G. Narayanan ◽  
Houssein Guimbard ◽  
Arata Kuno
Keyword(s):  
East Asia ◽  
Economic Benefits ◽  
Jel Classification ◽  
Trade Integration ◽  
Economic Partnership ◽  
Trade Analysis ◽  
Global Trade Analysis Project ◽  
The Impact ◽  
Tariff Reductions

While many studies focus on the impact of trade agreements, the literature has not focused on the extent of their implementation, in terms of the aspects agreed upon therein. In this article, we identify the past achievements of economic partnership agreements (EPAs) in the East Asian region in terms of tariff removals and suggest room for further economic benefits from trade liberalisation in the region. Second, we incorporate the HS6-level tariff concession dataset, which distinguishes between tariff removals agreed in these EPAs in East Asia but not yet implemented, from existing overall tariffs in 2011, in the Global Trade Analysis Project (GTAP) Database, which only incorporates enforced tariff reductions through the base-year applied tariffs. To analyse future trade integration, we include commitments that are not yet implemented. This allows us to analyse partial versus full enforcement of tariff concession commitments. Our results suggest that taking those commitments into account matters economically in East Asia. JEL Classification: D58, F13, F14, F15, F17

scholarly journals What is the Impact of Increased Business Competition?

2019 ◽  
Vol 2019 (276) ◽  
Author(s):  
Sonia Feliz ◽  
Chiara Maggi
Keyword(s):  
Heterogeneous Firms ◽  
Firm Dynamics ◽  
Demand Elasticity ◽  
Employment Decisions ◽  
Firm Level ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
Entry Time ◽  
Variable Markups ◽  
The Impact

This paper studies the macroeconomic effect and underlying firm-level transmission channels of a reduction in business entry costs. We provide novel evidence on the response of firms' entry, exit, and employment decisions. To do so, we use as a natural experiment a reform in Portugal that reduced entry time and costs. Using the staggered implementation of the policy across the Portuguese municipalities, we find that the reform increased local entry and employment by, respectively, 25% and 4.8% per year in its first four years of implementation. Moreover, around 60% of the increase in employment came from incumbent firms expanding their size, with most of the rise occurring among the most productive firms. Standard models of firm dynamics, which assume a constant elasticity of substitution, are inconsistent with the expansionary and heterogeneous response across incumbent firms. We show that in a model with heterogeneous firms and variable markups the most productive firms face a lower demand elasticity and expand their employment in response to increased entry.

scholarly journals Tariff Elimination and the Competitiveness of Wine-Exporting Countries in Japan

2021 ◽  
Vol 50 (1) ◽  
pp. 76-98
Author(s):  
Emily K. Greear ◽  
Andrew Muhammad
Keyword(s):  
Adverse Effects ◽  
Bilateral Trade ◽  
Trade Agreements ◽  
Rotterdam Model ◽  
The Impact ◽  
Tariff Reductions ◽  
Wine Demand

AbstractBilateral trade agreements between Japan and major wine-exporting countries have resulted in tariff eliminations in Japan. This raises questions about how tariffs affect the competitiveness of wine-exporting countries. The generalized dynamic Rotterdam model was used in estimating Japanese wine demand by source. Estimates were then used to project the impact of tariffs on imports of Australian, Chilean, French, German, Italian, Spanish, and U.S. wine. Tariff reductions primarily benefit affected countries, with limited adverse effects on competing countries. The elimination of tariffs on U.S. wine should offset any losses from competing trade agreements.

scholarly journals Effects of Tariff Concessions on Japanese Beef Imports by Product and Source

2017 ◽  
Vol 47 (1) ◽  
pp. 158-177 ◽  
Author(s):  
Andrew Muhammad ◽  
Amanda M. Countryman ◽  
Kari E. R. Heerman
Keyword(s):  
Trade Agreements ◽  
Negative Effects ◽  
Economic Partnership Agreement ◽  
Economic Partnership ◽  
Partnership Agreement ◽  
The Impact ◽  
Tariff Reductions ◽  
The U.S

Withdrawal from the Trans-Pacific Partnership (TPP) could be costly for U.S. beef exports to Japan given existing trade agreements such as the Japan-Australia Economic Partnership Agreement (JAEPA). We estimate the demand for imported beef in Japan by source and product and assess the impact of tariff reductions on exporting countries. Our results suggest JAEPA will result in considerable increases in Australian beef exports to Japan, largely at the expense of the U.S. beef. However, similar tariff reductions for U.S. beef could eliminate these negative effects and even result in a net increase in beef imports from both countries.

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