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Title: Trade liberalization and wage differentials of heterogeneous firms : three empirical studies of Chinese firms
Author: Liu, Yi
Awarding Body: University of Birmingham
Current Institution: University of Birmingham
Date of Award: 2016
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This thesis includes three independent empirical studies that examine the relationship between trade and wages for Chinese manufacturing industries for the period 2002-2006. Chapter 2 uses highly detailed firm-level industrial production data merged with product-level trade transaction data to make a direct test of Amiti and Davis (2011) model. The potential endogeneity issue of tariffs is addressed in several ways although our results support the premise that post-WTO period tariff reductions were exogenous. In Chapters 3 and 4 we pay close attention to processing trade. Chapter 3 reexamines the relationship between tariff reductions and firm wages taking into account the special tariff treatment given to processing firms. We find that processing firms pay higher wages following a fall in firm output tariffs. However, non-processing firms pay higher wages after a fall in firm input tariffs. Finally, Chapter 4 examines the impact of tariff reductions on the decision of firms to switch between different modes of exporting and explores how export switching affects firm wages through trade liberalization. The results highlight that input tariff reductions at the firm level determine a firm’s decision and direction of export switching. The future research ideas are also concluded.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available
Keywords: DS Asia ; HB Economic Theory ; HD Industries. Land use. Labor ; HF Commerce