Dai Mi's Co-authored Paper Accepted for Publication in Journal of International Economics
Time :2020-05-18

 

Recently, the paper "How Did China's WTO Entry Affect U.S. Prices", authored by BNUBS associate professor Dai Mi, Mary Amiti from Federal Reserve Bank of New York, Robert Feenstra from the University of California Davis and John Romalis from the University of Sydney has been accepted for publication in the Journal of International Economics (ABS4 Star), which is one of the top international journal in Economics.

 

This paper analyzes the impact of China's export expansion following its WTO entry on the U.S. manufacturing prices. The paper finds that China’s WTO entry significantly reduced U.S. manufacturing price between 2000 and 2006.This effect is due to the falling price and diversification of China's exports on the one hand, and on the other hand due to the fact that China's export expansion led other countries exporting to the U.S. and U.S. companies to lower their prices. This paper focuses on two trade policies, lower inputs tariffs of intermediate products and reduction in tariff uncertainty. It is found that the changes of both trade policies reduced the effective prices of U.S. manufacturing price, but the influence of import tariff drop of intermediate products is greater.

 

 

Abstract

 

We analyze the effects of China’s rapid export expansion following its WTO entry on the U.S. prices of manufacturing goods between 2000 and 2006, exploiting cross-industry variation in trade liberalization. Lower input tariffs in China lowered costs and, in conjunction with reduced U.S. tariff uncertainty, expanded China’s export participation. WTO entry therefore led to lower effective prices for Chinese exports, and we find a substantial reduction in the prices of other countries selling to the U.S., too. The largest contribution to the overall price reduction comes from lower inputs tariffs in China, with further price reductions caused by the reduction in tariff uncertainty. Other policy reforms such as the elimination of U.S. quotas under the Multifibre Agreements and of Chinese export controls also reduced prices.

 

 

Introduction of Associate Professor Dai Mi:

 

Dai Mi has a PhD in Economics from Peking University, and went to Columbia University and the Federal Reserve Bank of New York as a visiting scholar. His research interests are international trade and development economics. The research achievements have been published in international journals such as the Journal of International Economics , the Journal of Development Economics and The World Economy , as well as Chinese journals such as the Management World , China Economic Quarterly and The Journal of World Economy . His achievements have been awarded the "An Zijie International Trade Research Award", "Pushan Excellent Paper Award on World Economics ", "Outstanding Achievements Award (Humanities and Social Sciences) of Higher Education Institutions of Ministry of Education" and many other academic awards.

 

(By Science Research Office)