The paper first analyzes the pattern of trade for China and India in the new century. We find that: (1) Both countries have high openness ratios that positively associated with their growing labor productivity over years. (2) China’s world export share keeps increasing whereas India maintains...

How do reductions in input trade costs affect firm's sales decision between domestic and foreign markets? Aside from tariffs cut in ordinary imports over time, a large extent of firms engaged in duty-free processing trade also experienced a decline in input trade cost. Accordingly, the imported...

This paper provides a comprehensive overview of China's processing trade using highly disaggregated 2010 transaction-level data. By highlighting the key role of processing trade in China's foreign trade, we argue that various free-trade zones have served as important instruments in boosting...