Quota restrictions and intra-firm reallocations: Evidence from Chinese exports to the US

Richard Upward; Zheng Wang

doi:10.1016/j.econlet.2016.04.025

Quota restrictions and intra-firm reallocations: Evidence from Chinese exports to the US

Richard Upward, Zheng Wang (Lead / Corresponding author)

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Abstract

We study how Chinese textile and clothing firms adjusted the product structure of their exports to the US, as triggered by the termination of Multifiber Arrangement (MFA) quotas. We find that the removal of MFA quotas induced firms to expand their product scope while reducing the concentration on their core product. These effects are strong for domestic and foreign privately-owned firms, but insignificant for state-owned firms.

Original language	English
Pages (from-to)	71-74
Number of pages	4
Journal	Economics Letters
Volume	144
Early online date	13 May 2016
DOIs	https://doi.org/10.1016/j.econlet.2016.04.025
Publication status	Published - Jul 2016

Keywords

Quota
MFA
Textile
Product scope
Product concentration

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10.1016/j.econlet.2016.04.025Licence: Elsevier User Licence

Author Accepted ManuscriptAccepted author manuscript, 928 KBLicence: CC BY-NC-ND

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abstract = "We study how Chinese textile and clothing firms adjusted the product structure of their exports to the US, as triggered by the termination of Multifiber Arrangement (MFA) quotas. We find that the removal of MFA quotas induced firms to expand their product scope while reducing the concentration on their core product. These effects are strong for domestic and foreign privately-owned firms, but insignificant for state-owned firms.",

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AU - Upward, Richard

AU - Wang, Zheng

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N2 - We study how Chinese textile and clothing firms adjusted the product structure of their exports to the US, as triggered by the termination of Multifiber Arrangement (MFA) quotas. We find that the removal of MFA quotas induced firms to expand their product scope while reducing the concentration on their core product. These effects are strong for domestic and foreign privately-owned firms, but insignificant for state-owned firms.

AB - We study how Chinese textile and clothing firms adjusted the product structure of their exports to the US, as triggered by the termination of Multifiber Arrangement (MFA) quotas. We find that the removal of MFA quotas induced firms to expand their product scope while reducing the concentration on their core product. These effects are strong for domestic and foreign privately-owned firms, but insignificant for state-owned firms.

KW - Quota

KW - MFA

KW - Textile

KW - Product scope

KW - Product concentration

U2 - 10.1016/j.econlet.2016.04.025

DO - 10.1016/j.econlet.2016.04.025

M3 - Article

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VL - 144

SP - 71

EP - 74

JO - Economics Letters

JF - Economics Letters

ER -

Quota restrictions and intra-firm reallocations: Evidence from Chinese exports to the US

Abstract

Keywords

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