The paper "Export Quality and Intermediate Inputs", co-authored by Associate Professor Yaqi WANG of the School of Finance, Wenkui ZHANG, a researcher of Development Research Center of the State Council, and Assistant Professor Shengjie HONG of School of Economics and Management at Tsinghua University, was published in the 8th issue of "Management World" in 2018.
Abstract: Based on China Customs database and China Industrial Enterprise database, this paper analyses the changes of export product quality and its influencing factors before and after the global financial crisis. Our analysis shows that after the financial crisis, the quality of China's export products has experienced a considerable decline. One of the important reasons is the negative impact of the decline in imports of intermediate goods. We also find that the influence of this negative impact on various industries in China is not balanced. The domestic industries in which upstream productivity can be rapidly increased are less affected. Through the dynamic analysis of products, we also find that the decline in imports of intermediate products will affect the quality of export products by reducing the entry and increasing the exit of high-quality products. Our research enriches the relevant literature. Moreover, under the background that some developed countries want to impose restrictions on the export of high-tech intermediate products of China, our research also has a strong policy value in the strategic process of turning our country from a big trading country into a powerful trading country.
Keywords: Intermediate Import; Product Quality; Foreign Trade