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Trade Liberalization of Intermediate Inputs and Technology Choice of China's Manufacturing Enterprises
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TitleTrade Liberalization of Intermediate Inputs and Technology Choice of China's Manufacturing Enterprises  
AuthorChen Wen and Miao Shuangyou  
OrganizationXiamen University 
Emailwendych@xmu.edu.cn;msy19860226@163.com  
Key WordsTrade Liberalization of Intermediate Inputs; Technology Choice; Firm Productivity 
AbstractIn this paper, we build a theoretical model under the framework of heterogenous enterprises to investigate the mechanism of intermediate input trade liberalization on enterprises' technology choice. Applying China's manufacturing enterprises data from 2001 to 2006, we analyze the effect of intermediate input trade liberalization on China’s manufacturing enterprises’ technology choice. Empirical results show that after joining into the WTO, the intermediates trade liberalization policy has accelerated China’s manufacturing enterprises to adopt high technology. Taking into account of export situation, we find that the promotion effect is related to enterprises’ productivity. In detail, the policy only shows significant influence on export enterprises with medium and high productivity, and such differentiation tends to be more obvious in Eastern region. Other conclusions from the analysis are that technology intensive exporting enterprises receive the strongest influence while the effects on labor intensive exporting enterprises are not significant by intermediates trade liberalization. 
Serial NumberWP1090 
Time2016-08-02 
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