All-Around Table Liberalization and Firm-Level Employment: Theory and Evidence from China

53 Pages Posted: 1 Dec 2017

See all articles by Antonio Rodriguez-Lopez

Antonio Rodriguez-Lopez

University of California, Irvine

Miaojie Yu

Peking University - China Center for Economic Research (CCER)

Date Written: October 26, 2017

Abstract

Chinese firms faced an all-around trade liberalization process during the early 2000s: lower barriers from other countries on Chinese goods, and lower Chinese barriers on other countries’ goods and inputs. Using novel firm-level tariff data for trading Chinese manufacturing firms, this paper disentangles the effects of each type of trade liberalization on Chinese firm-level employment. For each firm type, reductions in Chinese and foreign final-good tariffs are associated with job destruction in low-productivity firms and job creation in high-productivity firms. In contrast, the net effect of reductions in Chinese input tariffs is limited to job destruction in low-productivity ordinary exporters.

Keywords: firm-level employment, firm-level tariffs, heterogeneous firms

JEL Classification: F120, F140, F160

Suggested Citation

Rodriguez-Lopez, Antonio and Yu, Miaojie, All-Around Table Liberalization and Firm-Level Employment: Theory and Evidence from China (October 26, 2017). CESifo Working Paper Series No. 6710. Available at SSRN: https://ssrn.com/abstract=3079479

Antonio Rodriguez-Lopez (Contact Author)

University of California, Irvine ( email )

Campus Drive
Irvine, CA 62697-3125
United States

Miaojie Yu

Peking University - China Center for Economic Research (CCER) ( email )

Beijing, Beijing 100871
China
+86-10-6275-3109 (Phone)

HOME PAGE: http://mjyu.ccer.edu.cn

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