TY  - GEN
AB  - The paper explores the causes of China's rising manufacturing exports to the EU
after WTO accession. While the European trade policy environment remained largely
unchanged in most sectors, a spillover from a change in US trade policies towards
China is emphasized. In the proposed model the transmission occurs through a global
component of the fixed costs firms must pay in order to export. If a large fraction of
this component can be covered from exporting to one destination, exporters will serve
also other markets to maximize their profits. The empirical analysis makes use of the
removal of US tariff uncertainty in conjunction with China's WTO accession. It shows
that: (i) the structure of China's export boom to the EU conforms to the pattern of
US tariff uncertainty; (ii) the adjustment takes place at the extensive margin, (i.e. a
good is exported to more destinations); and (iii) the effect phases out after a few years.
The results have implications for the scope of international policy negotiations and
provide suggestive evidence on the nature of the fixed costs that manufacturing firms
in low-wage countries must overcome.
DA  - 2015
DO  - 10.4119/unibi/2915565
KW  - Exports
KW  - China
KW  - WTO
KW  - Policy Uncertainty
KW  - Spillover
LA  - eng
PY  - 2015
SN  - 2196-2723
SP  - 43-
TI  - US Policy Spillover(?) — China’s Accession to the WTO and Rising Exports to the EU
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29155650
Y2  - 2024-11-25T03:51:57
ER  -