This paper uses an unexpected trade disruption due to World War I to study how a temporary reduction of imports affects the entry of industrial firms. I construct a new transportation network to capture counties’ exposure to this trade shock and compile panel data to examine the impact on China’s manufactured textile industry. I find that counties with greater prewar exposure to international trade experienced more firm entry after the war. The effect was delayed because the war simultaneously hindered machinery imports. Better access to finance also contributed to firm entry after the trade shock.

刘丛，现任暨南大学经济与社会研究院助理教授，于2016年获得美国亚利桑那大学经济学博士学位，2011年获得北京大学经济学学士学位。她的研究领域为中国经济史，发展经济学等，已有研究成果发表于Journal of Economic History、《经济研究》等国内外权威期刊，主持国家自然科学基金青年项目。