Title: Trade Policy Uncertainty and Exporter Product Scope

Speaker: Liu Zongyue, PhD Candidate in Economics, The Hong Kong Polytechnic University. Research interests include international trade, population migration and spatial economics.

Abstract: This study examines how trade policy uncertainty (TPU) shapes exporting firms’ product scope. Using data on Chinese exporters, we show that elevated TPU induces firms to diversify their product portfolios as a form of risk management, whereas a stable trade policy regime promotes specialization. To rationalize these findings, we develop a model in which firms choose between broadening their product range and investing in the quality of existing products. Greater tariff uncertainty shifts firms’ incentives toward introducing additional, lower-quality products, reflecting a trade-off between the benefits of specialization and the insurance value of diversification.

Date&time : 7 January 2026, 12:15-13:15

Venue: B321,NZhixin Building, Central Campus, Shandong University