Trade Policy Uncertainty and Enterprise Inventory Management Behavior
DOI:
https://doi.org/10.54097/fbem.v7i3.5272Keywords:
Trade policy uncertainty, Inventory management, WTO.Abstract
This paper takes the Permanent Normal Trade Relations (PNTR) granted by the United States after China's accession to the WTO as a quasi-natural experiment, and systematically examines the impact of changes in trade policy uncertainty on the inventory management behavior of enterprises using the method of multiple differences. This paper finds that the decline of trade policy uncertainty has significantly reduced the quantity of enterprise inventory, especially those exporting to the United States. From the perspective of trade policy changes, this paper provides a new explanation for understanding the dynamic changes in the quantity of Chinese enterprise inventory in recent years, and also helps to systematically evaluate the economic effects of trade policy uncertainty changes.
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