Fan, Haichao; Li, Yao Amber; Yeaple, Stephen R. - HKUST Institute for Emerging Market Studies (IEMS), … - 2015
This paper presents theory and evidence from highly disaggregated Chinese data that tariff reductions induce exporters to upgrade product quality. The paper documents two stylized facts and develops a simple analytic framework to predict that import tariff reductions induce an incumbent...