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Exports and firm survival: do trade regime and productivity matter?

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  • Meihong Dai
  • Richard Harris
  • Yuduo Lu
  • Haiyang Liu

Abstract

This article aims to investigate the role of trade regime and productivity in the link between exporting and firm survival. We use firm-level data from China to examine whether exporters engaged in different trade regimes and with different levels of productivity react differently with regard to survival probability. We find that exporters engaged in all types of trade regimes have higher survival probabilities in comparison with nonexporters; however, the survival probability of exporters engaged in processing trade is less positively affected by productivity.

Suggested Citation

  • Meihong Dai & Richard Harris & Yuduo Lu & Haiyang Liu, 2016. "Exports and firm survival: do trade regime and productivity matter?," Applied Economics Letters, Taylor & Francis Journals, vol. 23(6), pages 457-460, April.
    • Handle: RePEc:taf:apeclt:v:23:y:2016:i:6:p:457-460
    DOI: 10.1080/13504851.2015.1080800
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    References listed on IDEAS

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    1. Head, Keith & Ries, John, 2003. "Heterogeneity and the FDI versus export decision of Japanese manufacturers," Journal of the Japanese and International Economies, Elsevier, vol. 17(4), pages 448-467, December.
    2. Zheng Wang & Zhihong Yu, 2012. "Trading Partners, Traded Products and Firm Performances of China’s Exporter-Importers: Does Processing Trade Make a Difference?," The World Economy, Wiley Blackwell, vol. 35(12), pages 1795-1824, December.
    3. Miguel Manjón Antolín & Juan A. Máñez & María E. Rochina Barrachina & Juan A. Sanchis Llopis, 2013. "Export intensity and the productivity gains of exporting," Applied Economics Letters, Taylor & Francis Journals, vol. 20(8), pages 804-808, May.
    4. Miaojie Yu, 2015. "Processing Trade, Tariff Reductions and Firm Productivity: Evidence from Chinese Firms," Economic Journal, Royal Economic Society, vol. 125(585), pages 943-988, June.
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    Cited by:

    1. Ichiro Iwasaki & Evžen Kočenda, 2020. "Survival of service firms in European emerging economies," Applied Economics Letters, Taylor & Francis Journals, vol. 27(4), pages 340-348, February.

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