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

Upward, Richard; Wang, Zheng

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.

Citation

Upward, R., & Wang, Z. (2016). Quota restrictions and intra-firm reallocations: evidence from Chinese exports to the US. Economics Letters, 144, https://doi.org/10.1016/j.econlet.2016.04.025

• Journal Article Type: Article
• Acceptance Date: Apr 20, 2016
• Online Publication Date: May 4, 2016
• Publication Date: Jul 1, 2016
• Deposit Date: Apr 25, 2016
• Publicly Available Date: May 4, 2016
• Journal: Economics Letters
• Print ISSN: 0165-1765
• Electronic ISSN: 0165-1765
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 144
• DOI: https://doi.org/10.1016/j.econlet.2016.04.025
• Keywords: Quota; MFA; Textile; Product scope; Product concentration
• Public URL: https://nottingham-repository.worktribe.com/output/792614
• Publisher URL: http://www.sciencedirect.com/science/article/pii/S0165176516301355