This paper explores how reductions in tariffs on imported inputs and final goods affect firm productivity by exploiting the special tariff treatment that processing firms apply on imported inputs as opposed to those of non-processing firms. Highly disaggregated Chinese transaction-level trade...

How do reductions in input trade costs affect firm's sales decision between domestic and foreign markets? By using Chinese firm-level production data and transaction-level trade data during 2000-2006 to construct firm-specific input trade costs, we find rich evidence that a reduction in input...

Chapter 1. Processing Trade, Trade Liberalisation, and Opening Up: China’s Miracle of International Trade -- Chapter 2. Import, Firm Productivity, and Product Complexity -- Chapter 3. Trade Liberalization, Product Complexity, and Productivity Improvement: Evidence from Chinese Firms. - Chapter...

This paper investigates how input trade liberalization affects fi rm-level wage inequality between skilled and unskilled labor. A fall in input tariffs generates increased fi rm pro fits, which, in turn, widens wage inequality since skilled labor enjoys a larger proportion of the incremental pro...

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...