Work

How Does Regional Trade Policy Uncertainty Affect the Quality of Imported Products?—An Analysis Using CAFTA

Year: 2025

Type: article

Abstract: ABSTRACT We study the impact of regional trade policy uncertainty on the product quality imported from ASEAN by Chinese enterprises. The research uses micro‐enterprise‐level data from CAFTA and employs the DID method for empirical tests. The analysis shows that China's FTA strategy has helped reduce regional trade policy uncertainty and significantly improved the quality of imported products. The quality‐improvement effect varies based on ownership types, regions, factor densities and usage properties. An impact mechanism test reveals that the decline in regional trade policy uncertainty promotes the improvement in the product quality imported from ASEAN by Chinese enterprises through the competition effect and financial constraint mitigation effect.

Source: World Economy

DOI: 10.1111/twec.13701

Authors: Kexuan Zhou, Linhui Yu, Yonghui Han, Sanjay Kumar, Ying Wang

Institutions: Guangdong Open University, Zhejiang University, Guangdong University of Foreign Studies, Central Michigan University

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: bronze

Funder: National Natural Science Foundation of China

Award: G4068917472