• Corpus ID: 212980069

Import Competition and Export Markups: Evidence from Chinese Multi-Product Exporters

  title={Import Competition and Export Markups: Evidence from Chinese Multi-Product Exporters},
  author={Hongkui Liu and Mingli Xu and Tenglong Zhong},
  journal={Annals of Economics and Finance},
We present evidence using highly disaggregated Chinese firm-product data that increased import competition (resulting from reductions in output tariffs) induces incumbent exporters to increase product markups in export markets. This is driven by the upward markup adjustments of products closer to firms' core competencies, while products farther from core competencies have their markups lowered. We also investigate the underlying mechanisms empirically. Chinese multi-product exporters invest in… 
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