Expanding export variety: The role of institutional reforms in developing countries

• 成果类型: Article
• 署名作者: Sheng, Liugang; Yang, Dennis Tao
• 署名单位: Chinese University of Hong Kong; University of Virginia
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2015.08.009
• 发表日期: 2016
• 页码: 45-58
• 关键词: Export variety; Foreign direct investment; Ownership structure; Contract environment; Processing trade; Policy reform; CHINA

摘要

This paper presents theory and evidence that institutional reforms in developing countries can help expand their product varieties in exports. Our model suggests that relaxing ownership restrictions on foreign direct investment, improving contract enforcement, and reducing offshoring cost can induce multinational companies to produce new products in host developing countries. Consistent with these theoretical predictions, we find empirical evidence that ownership liberalization, judicial quality and decline in offshoring costs played an important role in increasing the extensive margin of processing exports in China for the period of 1997-2007. (C) 2015 Elsevier B.V. All rights reserved.