G2TT
来源类型Discussion paper
规范类型论文
来源IDDP14490
DP14490 Trade Liberalization and the Great Labor Reallocation
Yuan Zi
发表日期2020-03-14
出版年2020
语种英语
摘要The extent to which a country can benefit from trade openness crucially depends on how easily it can reallocate resources. However, we know little about the role of domestic frictions in shaping the effects of trade policy. I address this question by analyzing the impact of tariff reductions on the spatial allocation of labor in China and how this impact depends on migration frictions that stem from China's household registration system (hukou). I first provide reduced-form evidence that input trade liberalization has induced significant spatial labor reallocation in China, with a stronger effect in regions with less hukou frictions. The quantitative exercise shows that trade liberalization increases China's welfare by 0.71%. Abolishing the hukou system leads to a direct welfare improvement of 1.33%. Additionally, it increases gains from tariff reductions by 2% and alleviates the latter's negative distributional consequences. I also develop a novel measure of migration frictions associated with the hukou system.
主题International Trade and Regional Economics
关键词Input trade liberalization Spatial labor reallocation Hukou frictions
URLhttps://cepr.org/publications/dp14490
来源智库Centre for Economic Policy Research (United Kingdom)
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/543389
推荐引用方式
GB/T 7714
Yuan Zi. DP14490 Trade Liberalization and the Great Labor Reallocation. 2020.
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