The Economic Journal· 2014Q1
Processing Trade, Tariff Reductions and Firm Productivity: Evidence from Chinese Firms
- 839citations
- Q1SCImago
- 2014year
Short summary
Reductions in tariffs on imported inputs and final goods boost productivity in large Chinese trading firms, contributing at least 14.5% to economy-wide productivity growth.
AI-generated from the title and abstract; the full text is not read.
Key points
- Input and output tariff reductions positively affect firm productivity in large Chinese trading firms.
- The impact of input tariff reductions on productivity is generally weaker than output tariff reductions.
- Productivity gains from tariff reductions decrease as the share of processing imports increases.
- Both types of tariff reductions contribute at least 14.5% to economy-wide productivity growth.
AI-generated from the title and abstract; the full text is not read.
Abstract
Abstract This article explores how reductions in tariffs on imported inputs and final goods affect the productivity of large Chinese trading firms, with the special tariff treatment that processing firms receive on imported inputs. Firm-level input and output tariffs are constructed. Both types of tariff reductions have positive impacts on productivity that are weaker as firms’ share of processing imports grows. The impact of input tariff reductions on productivity improvement, overall, is weaker than that of output tariff reductions, although the opposite is true for non-processing firms only. Both tariff reductions are found to contribute at least 14.5% to economy-wide productivity growth.
The authors' abstract, as published at the source. The Economic Journal, 2014 · DOI ↗
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Field: General Economics, Econometrics and Finance
General Economics, Econometrics and FinanceEconomics, Econometrics and Finance