China Research Workshop 中国研究讲座 Lunch Discussion RSVP
Monday, Feb. 12, 2018 | 12:30-2:00 p.m. | GPS Dean's Conference Room (2nd Floor, Building 1)

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

Presenter: Miaojie Yu, Professor, China Center for Economic Research (CCER), Peking University

Chinese firms faced an all ‐ around trade liberalization process during the early 2000s: lower trade barriers from other countries on Chinese final goods, and lower Chinese barriers on other countries' final goods and inputs. Using novel firm ‐ level tariff data for trading Chinese manufacturing firms from 2000 to 2006, this paper disentangles the effects of each type of trade liberalization on Chinese firm ‐ level employment. The exercise distinguishes firms by type ‐‐‐ pure processing firm, ordinary non ‐ importing exporter, or ordinary importing exporter ‐‐‐ and productivity. For all types of firms, 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 a reduction in Chinese input tariffs is limited to job destruction in low ‐ productivity ordinary exporters. To guide the interpretation of the results, we develop a heterogeneous ‐ firm model with trade in both tasks and final goods that identifies the different forces through which each type of trade liberalization affects employment in each type of firm



CRW provides a forum for the presentation of original research by China scholars from around the country in social science and humanities, sponsored by the Fudan-UC Center on Contemporary China. To view archive and upcoming workshops list, visit:

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