Abstract
This study offers new empirical evidence on the connection between international trade and domestic entrepreneurial activities. Exploiting the tariff variation across industries and time during the recent US–China trade war, we find that the US import tariff increases are associated with relative reductions in Chinese new firm entry rates. The negative impact is more pronounced among industries that are dependent on US exports and with a higher irreversible investment ratio. Heterogeneity across regions with varying institutional quality is also identified. Robustness tests are provided.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
