Containing Chinese State-Owned Enterprises? The Role of Deep Trade Agreements
Regional trade agreements increasingly include provisions that regulate state-owned enterprises. This paper combines new information on the content of “deep” regional trade agreements and data on Chinese firm-level exports during 2000-11 to analyze...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/326941619094864250/Containing-Chinese-State-Owned-Enterprises-The-Role-of-Deep-Trade-Agreements http://hdl.handle.net/10986/35516 |
| Summary: | Regional trade agreements increasingly
include provisions that regulate state-owned enterprises.
This paper combines new information on the content of “deep”
regional trade agreements and data on Chinese firm-level
exports during 2000-11 to analyze the spillover effect of
rules on state-owned enterprises on the intensive and
extensive margins of Chinese state-owned enterprises’ trade.
Rather than containing state capitalism, regional trade
agreements regulating state-owned enterprises signed by
Chinese trading partners with third countries increase
exports and entry of Chinese state-owned enterprises as they
gain a competitive edge in regulated markets. This spillover
effect is robust to several extensions and is even stronger
for agreements that include rules on subsidies and
competition policy. This finding points to the need for
commonly agreed multilateral rules to regulate state owned enterprises. |
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