US policy spillover(?) – China's accession to the WTO and rising exports to the EU

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US policy spillover(?) – China's accession to the WTO and rising exports to the EU. / Mau, Karsten.
In: European Economic Review, Vol. 98, 09.2017, p. 169-188.

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@article{f94d93320d5f49739420262f03a140b8,
title = "US policy spillover(?) – China's accession to the WTO and rising exports to the EU",
abstract = "The paper analyzes transmission of bilateral trade policies on multilateral exports, due to existence of a global component in fixed export entry costs. Liberalization in one destination market induces redistribution of this global burden across multiple export destinations, thereby lowering the entry threshold in each of them. The empirical analysis exploits reduced US tariff uncertainty upon China's WTO accession, and examines its effect on China's EU exports. The main results reveal that: (i) the structure of China's export boom to the EU conforms to patterns of US tariff uncertainty; (ii) the adjustment takes place at the extensive margin; and (iii) the effect phases out after a few years. Evidence in support of a fixed-cost redistribution is also presented. The findings have implications for the scope of international policy negotiations and provide suggestive evidence on the nature of fixed costs faced by manufacturing firms in low-wage countries.",
keywords = "China, Exports, Fixed costs, Policy spillover, WTO, Economics",
author = "Karsten Mau",
year = "2017",
month = sep,
doi = "10.1016/j.euroecorev.2017.06.015",
language = "English",
volume = "98",
pages = "169--188",
journal = "European Economic Review",
issn = "0014-2921",
publisher = "Elsevier B.V.",

}

RIS

TY - JOUR

T1 - US policy spillover(?) – China's accession to the WTO and rising exports to the EU

AU - Mau, Karsten

PY - 2017/9

Y1 - 2017/9

N2 - The paper analyzes transmission of bilateral trade policies on multilateral exports, due to existence of a global component in fixed export entry costs. Liberalization in one destination market induces redistribution of this global burden across multiple export destinations, thereby lowering the entry threshold in each of them. The empirical analysis exploits reduced US tariff uncertainty upon China's WTO accession, and examines its effect on China's EU exports. The main results reveal that: (i) the structure of China's export boom to the EU conforms to patterns of US tariff uncertainty; (ii) the adjustment takes place at the extensive margin; and (iii) the effect phases out after a few years. Evidence in support of a fixed-cost redistribution is also presented. The findings have implications for the scope of international policy negotiations and provide suggestive evidence on the nature of fixed costs faced by manufacturing firms in low-wage countries.

AB - The paper analyzes transmission of bilateral trade policies on multilateral exports, due to existence of a global component in fixed export entry costs. Liberalization in one destination market induces redistribution of this global burden across multiple export destinations, thereby lowering the entry threshold in each of them. The empirical analysis exploits reduced US tariff uncertainty upon China's WTO accession, and examines its effect on China's EU exports. The main results reveal that: (i) the structure of China's export boom to the EU conforms to patterns of US tariff uncertainty; (ii) the adjustment takes place at the extensive margin; and (iii) the effect phases out after a few years. Evidence in support of a fixed-cost redistribution is also presented. The findings have implications for the scope of international policy negotiations and provide suggestive evidence on the nature of fixed costs faced by manufacturing firms in low-wage countries.

KW - China

KW - Exports

KW - Fixed costs

KW - Policy spillover

KW - WTO

KW - Economics

UR - http://www.scopus.com/inward/record.url?scp=85030641950&partnerID=8YFLogxK

U2 - 10.1016/j.euroecorev.2017.06.015

DO - 10.1016/j.euroecorev.2017.06.015

M3 - Journal articles

AN - SCOPUS:85030641950

VL - 98

SP - 169

EP - 188

JO - European Economic Review

JF - European Economic Review

SN - 0014-2921

ER -