This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 103 No. 6 (October 2013)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

Trade Liberalization and Embedded Institutional Reform: Evidence from Chinese Exporters

Article Citation

Khandelwal, Amit K., Peter K. Schott, and Shang-Jin Wei. 2013. "Trade Liberalization and Embedded Institutional Reform: Evidence from Chinese Exporters." American Economic Review, 103(6): 2169-95.

DOI: 10.1257/aer.103.6.2169

Abstract

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.

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (21.94 MB) | Online Appendix (404.63 KB) | Author Disclosure Statement(s) (110.82 KB)

Authors

Khandelwal, Amit K. (Columbia U)
Schott, Peter K. (Yale U)
Wei, Shang-Jin (Columbia U)

JEL Classifications

F13: Trade Policy; International Trade Organizations
F14: Empirical Studies of Trade
L67: Other Consumer Nondurables
O14: Industrialization; Manufacturing and Service Industries; Choice of Technology
O19: International Linkages to Development; Role of International Organizations
P23: Socialist Systems and Transitional Economies: Factor and Product Markets; Industry Studies; Population
P33: Socialist Institutions and Their Transitions: International Trade, Finance, Investment, Relations, and Aid


American Economic Review


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us