Haichao Fan, Yao Amber Li , Stephen Yeaple, 06 September 2014

Trade liberalisation has transformed the economies of many developing countries.   This column presents evidence from China’s accession to the WTO. The authors find that high tariffs on imported inputs prevented Chinese firms from producing high-quality goods. When these tariffs were reduced, firms upgraded the quality of their products, entering more competitive foreign markets. 

Holger Görg, László Halpern, Balázs Muraközy, 14 March 2010

Why are the prices of exports higher for countries that are further away – even when transport costs are excluded? This column suggests that this is partly because firms choose to ship out their best quality goods, just like a brewery with its “export” brands.

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