TY  - RPRT
        AU  - Sheng, Liugang
AU  - Yang, Dennis T.
        TI  - Expanding Export Variety: The Role of Institutional Reforms in Developing Countries
        PY  - 2013/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 7611
        UR  - https://www.iza.org/index.php/publications/dp7611
        AB  - This paper presents theory and evidence showing that institutional reforms in developing countries can effectively expand their product varieties in export. Our model demonstrates that relaxing foreign ownership controls and improving contract enforcement can induce multinational companies to produce new products in host developing countries, and that a combination of the two reforms has an amplifying effect on the introduction of product varieties. Consistent with these theoretical predictions, we find empirically that ownership liberalization and judicial quality played an important role in raising the extensive margin of processing exports in China for the period of 1997-2007.
        KW  - export variety
KW  - ownership structure
KW  - contract environment
KW  - processing trade
KW  - policy reform
KW  - China
        ER  -