University of Nottingham Ningbo China
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Export and trade uncertainty: Evidence from China's WTO accession

10 March 2014 (14:30-16:00)

The School of Economics and The Nottingham Centre for Research on Globalisation and Economic Policy (GEP) China are pleased to invite you to the following research seminar given by Dr Zhiyuan Li from Shanghai University of Finance and Economics.

About the seminar

We study the impacts of trade policy uncertainty on exports using the data on China's exports to the United States before and after China's WTO accession. A heterogeneous firm model of trade is developed, based on which we form predictions about the relationship between new export volumes and uncertainty reduction. Using China's customs data on firm exports to the United States, we confirm the model predictions. We find that new trade volumes were indeed positively related to the uncertainty reduction and the impacts of uncertainty reduction grew in magnitude over time. Moreover, the uncertainty reductions also induced reduced export volumes shipped by firms that exited from export. Comparing the new exporters and exiters, we find strong evidence that the new exporters charge lower prices while maintain higher quality than the exiters, and the advantage of new exporters are larger for products which experienced larger uncertainty reduction.

Speaker biography

Dr Zhiyuan Li is currently an Assistant Professor in the School of Economics at Shanghai University of Finance and Economics. He earned his PhD and MA from University of California, Davis, both in economics, and MS from Tsinghua University. His current research interests include international economics, industrial organisation, financial economics, and applied econometrics. His research has been published in Review of Economics and Statistics The World Economy and Journal of Economic Behavior & Organization.