Jiancong Liu: Pro-Competitive Gains of Trade Facilitation: Evidence from China

Seminars - PhD JM Practice Talk - Applied Micro
Speakers
Jiancong Liu, Bocconi University
12:30pm - 1:45pm
Alberto Alesina Seminar Room 5-E4-SR04 - Floor 5 - via Roentgen 1

This paper investigates how trade facilitation affects firms asymmetrically. We ex-plore China’s “Single Window” reform, which streamlined administrative procedures ininternational trade, to elucidate within-country distributional effects. Leveraging theby-province roll-out of the reform, we find decreasing per-shipment fixed costs and in-creasing export value at the aggregate level due to quantity growth. The falling tradecosts encourage entry of new firms, intensify competition, thus lead to null, if any neg-ative, impacts on top firms. Such pro-competition effects not only improve domesticallocation efficiency, the consequent declining export prices also signify welfare gains to international buyers. Our findings provide vital empirical insights for the real impacts of the trade facilitation reform

For Information contact angela.baldassarre@unibocconi.it or giulia.zenoni@unibocconi.it.