Does better regulatory institutions always enhance the productivity effects of services trade liberalization？.

ABSTRACT: The majority of previous studies have asserted that the high quality of local institutions can improve the productivity effects of trade policies; yet, only a few studies have acknowledged the heterogeneous impact of these institutions. Using data from Chinese manufacturing plants, we examine the moderating effects of regional-level regulations on the effectiveness of national services trade policy. The key findings are threefold: First, as the initial degree of service liberalization advances, the productivity effect of trade liberalization diminishes. Second, opening access to foreign enterprises can substitute for pro-competitive regulatory reform. Regardless of whether the regulatory institutions related to administrative processes, law enforcement, and commercial service have improved

SUBMITTER: Meng F 

PROVIDER: S-EPMC11327597 | biostudies-literature | 2024 Aug

REPOSITORIES: biostudies-literature