Article ID Journal Published Year Pages File Type
5058238 Economics Letters 2016 4 Pages PDF
Abstract

•This paper studies whether the product standards improve the product quality.•China's transaction level data from customs are used for investigation.•We exploit EU's policy on lighter's standard as a natural experiment.•Triple difference method is adopted for identification.•The results reveal that lighter standards lift export quality of China's lighters to EU.

Using European Union's decision on lighters on 11 May 2006 that only lighters which are child-resistant are placed on the market as a natural experiment, this paper firstly examines the impact of product standards on export quality causally. We use China's HS-8 digit product level trade data and triple difference approach to analyze whether the product standards causally improve the product quality. We get the answer yes.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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