Suchergebnisse

AbstractState monopoly hinders market integration through rising interregional trade barriers. This article provides an account of the market reform on dismantling state monopoly as a natural experiment to investigate the extent to which the reform affects domestic market integration. The state monopoly on China's edible salt market was dismantled by implementing a market reform on the first of January 2017 that terminated the 2000‐year state monopoly on edible salt. Using a set of unique retailing price datasets on edible salt across cities over 10‐day periods every month, we take advantage of the regional and temporal variances of edible salt retailing price between origins of production and other cities to demonstrate market integration nationwide in China. The regression discontinuity estimation is leveraged based on an apparently sharp discontinuity in inter‐city price differences. The results suggest that the dissolution of state monopoly on edible salt market leads to a 3.14 percent decrease in price differences of edible salt between origins and other cities, thus ultimately resulting in the promoted market integration. The results also suggest that the varied iodine contents in edible salt, the market power of state‐owned enterprises and the government‐firm relationships exert promising roles in the influence.

This paper examines the impact of foreign entry deregulation in China on the export price and quality of manufacturing firms through input–output linkage. We create a unique dataset describing the extent of regulatory control over foreign entry across approximately 900 industries covering all primary, manufacturing and services sectors. Results suggest foreign entry deregulation encourages firms to improve product quality and increase export prices. Deregulation in the manufacturing sectors has more impact on downstream export price and quality, compared with services sectors. Moreover, firms having larger imported inputs benefit more from foreign entry deregulation. These effects are robust to alternative specifications. (JEL F1, D2, O2)

AbstractIn this paper, we investigate the influence of market rivalry on firm‐level exchange rate pass‐through. Similar to Bloom et al. Econometrica, 80, 1347–1393 (2013), we define market rivalry as product market proximity, and expect the cross market spillovers, that is, through leaked information or reputation, to affect firm‐level export price. Using a comprehensive dataset from Chinese exporters for the 2000–2007 period, we find that in response to a higher degree of market rivalry firms are less responsive to exchange fluctuations. This unresponsiveness suggests a higher degree of exchange rate pass‐through. The influence of market rivalry is stronger among firms that export consumption and heterogeneous products, and to developed countries. Our results are robust to different measures of market rivalry and specifications.