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