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The Effect of Restrictive Trade Barriers on the Export Product Scope

【Authors】
HU Beibei & JIN Yuying
【WorkUnit】
HU Beibei (Shanghai University of International Business and Economics,201620)JIN Yuying (Shanghai University of Finance and Economics,200433)
【Abstract】

This paper introduces restrictive trade barriers (RTBs) into the heterogeneous firm model and investigates the effects of RTBs on the export product scope and the upgrade of the products based on the export database at the firm, destination country and product levels and global trade barrier database. The main findings are as follows. The RTBs reduce the firms' export product scope on the whole and improve the quality of export products by promoting resource reallocation. Moreover, this paper divides these RTBs into three categories and finds different impact among them. The direct trade barriers and the localized sourcing both reduce the export product scope and improve the quality of export products, while the government subsidy have no significantly effect on the product scope and quality. In addition, we also use the mediating effect to examine the impact mechanism of trade barriers promoting the upgrading of product quality. The conclusions provide valuable reference for the Chinese government to effectively respond to global trade barriers.

JEL:F10, F13, F23

【KeyWords】
Restrictive Trade Barrier, Firm Export, Product Scope, Quality Upgrade