Title

The Role of Trade Costs in Global Production Networks: Evidence from China’s Processing Trade Regime

Alyson C. Ma and Ari Van Assche

The Role of Trade Costs in Global Production Networks: Evidence from China’s Processing Trade Regime

This paper uses data from China's processing trade regime to analyze the role of trade costs on trade within global production networks (GPNs). Under this regime, firms are granted duty exemptions on imported inputs as long as they are used solely for export purposes. As a result, the data...