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Exporting from China: The Determinants of Trade Status

Author

Listed:
  • Russell Cooper
  • Guan Gong
  • Guanliang Hu
  • Ping Yan

Abstract

This paper studies the exporting decision of Chinese manufacturing firms. The economic framework stresses the dynamic decision by both state controlled and private entities to export in a model with labor adjustment costs. In this complex environment, a simple decision rule whereby export status depends only on current productivity does not hold. Nor does this rule match data patterns. The estimated model is used to understand the factors that influence export status. The analysis highlights the economic significance of labor adjustment costs in shaping both employment and trade dynamics.

Suggested Citation

  • Russell Cooper & Guan Gong & Guanliang Hu & Ping Yan, 2020. "Exporting from China: The Determinants of Trade Status," NBER Working Papers 28289, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:28289
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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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