Trade Liberalization and Embedded Institutional Reform: Evidence from Chinese Exporters
研究中国纺织服装出口在取消出口配额后的变化，发现配额取消带来的出口增长和价格下降主要由新企业进入驱动，表明配额分配存在资源错配，消除这种错配是生产率提升的重要原因。
If trade barriers are managed by inefficient institutions, trade liberalization can lead to greater-than-expected gains. We examine Chinese textile and clothing exports before and after the elimination of externally imposed export quotas. Both the surge in export volume and the decline in export prices following quota removal are driven by net entry. This outcome is inconsistent with a model in which quotas are allocated based on firm productivity, implying misallocation of resources. Removing this misallocation accounts for a substantial share of the overall gain in productivity associated with quota removal.