Does democracy affect trade? There are several channels by which democracy may affect trade, with differing implications. First, democratization in the exporting country can improve product quality and reduce trade costs, increasing bilateral trade. Second, democratization in the importing...

The literature has paid very little attention to a potential positive endogenous nexus between trade globalization and political liberalization. In this paper, I apply a structural approach to investigate two-way causality between the two based on the gravity trade theory, using data from a...

Trade theory has no clear prediction on how import protection affects an importing sector's relative size. In this paper, we estimate the impact of U.S. trade protection on industrial production relative size based on a translog GDP functional system. Using an industrial panel data set and...

The absorptive capacity of firms developed through R&D promotes learning by exporting. In this paper, we estimate the instantaneous and long‐run productivity effects of exporting on the universe of Chinese manufacturing firms. We find that exporting has very different productivity effects for...

This paper investigates the impact of trade liberalization on firm productivity by using both Chinese manufacturing firm-level data and highly disaggregated Chinese import data from 1998-2002. We construct a measure of firms' total factor productivity (TFP) by adopting an augmented Olley-Pakes...

Accelerating the development of the digital economy and building digital industrial clusters with international competitiveness has become an important connotation of China's high-quality economic development. From the perspective of the digital economy, this paper makes an in-depth study of the...