Quantity Restrictions and Price Adjustment of Chinese Textile Exports to the U.S.

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dc.contributor.author Bernhofen, Daniel en
dc.contributor.author Upward, Richard en
dc.contributor.author Wang, Zheng en
dc.date.accessioned 2017-09-20T10:15:13Z
dc.date.available 2017-09-20T10:15:13Z
dc.date.issued 2017
dc.identifier.citation Bernhofen, D, Upward, R. and Wang, Z. (2017) Quantity Restrictions and Price Adjustment of Chinese Textile Exports to the U.S. The World Economy, forthcoming. en
dc.identifier.uri http://hdl.handle.net/2086/14515
dc.description The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link. en
dc.description.abstract The elimination of the Multifibre Arrangement (MFA) in 2005 provides an unusual opportunity to examine the effects of a trade policy shock on export prices and firm behaviour. It was massive in scale, discrete in timing and exogenous to firms and consumers in the textile industry. Since the MFA quota removal did not affect all textile products at the same time, we are able to use a difference-in-difference approach to estimate the causal effects of the MFA. Using transaction-level data from the Chinese Customs Trade Statistics over the period 2000-2006, we find that the MFA removal reduced average export prices by about 25%. This fall was mainly caused by a combination of the entry of new low-price exporters and new low-price products, rather than a fall in prices of existing firm-product combinations. We also find that price reductions are twice as large for heterogeneous than for homogeneous products. en
dc.language.iso en en
dc.publisher Wiley en
dc.subject MFA en
dc.subject Chinese exports en
dc.subject US en
dc.subject textile en
dc.title Quantity Restrictions and Price Adjustment of Chinese Textile Exports to the U.S. en
dc.type Article en
dc.identifier.doi http://dx.doi.org/10.1111/twec.12581
dc.peerreviewed Yes en
dc.funder N/A en
dc.projectid NA en
dc.cclicence CC-BY-NC en
dc.date.acceptance 2017-09-12 en


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