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Export behaviour and firm productivity in China

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  • Hua Wang
  • Jingjing Yang
  • Mingyong Lai

Abstract

This study examines whether exporters become more productive through estimating a production function using Chinese firm-level data from 1997 to 2000. The results indicate that exporters are more productive and, more importantly, that export strategies promote the productivity of these firms. The test for the relative timing of export behaviour and gains in productivity provides strong evidence for the existence of learning-by-exporting effects rather than self-selection effects. These results are robust when controlling simultaneous bias and selection bias by using a fixed-effects model, SYS-GMM estimation and semi-parametric estimation.

Suggested Citation

  • Hua Wang & Jingjing Yang & Mingyong Lai, 2009. "Export behaviour and firm productivity in China," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 7(4), pages 409-428.
    • Handle: RePEc:taf:jocebs:v:7:y:2009:i:4:p:409-428
    DOI: 10.1080/14765280903332223
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    References listed on IDEAS

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    1. Jens M. Arnold & Katrin Hussinger, 2010. "Exports versus FDI in German Manufacturing: Firm Performance and Participation in International Markets," Review of International Economics, Wiley Blackwell, vol. 18(4), pages 595-606, September.
    2. Richard Baldwin, 2005. "Heterogeneous Firms and Trade: Testable and Untestable Properties of the Melitz Model," NBER Working Papers 11471, National Bureau of Economic Research, Inc.
    3. Jens Matthias Arnold & Katrin Hussinger, 2005. "Export Behavior and Firm Productivity in German Manufacturing: A Firm-Level Analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 141(2), pages 219-243, July.
    4. Chin Hee Hahn, 2004. "Exporting and Performance of Plants: Evidence from Korean Manufacturing," NBER Working Papers 10208, National Bureau of Economic Research, Inc.
    5. Mary Hallward-Driemeier & Giuseppe Iarossi & Kenneth L. Sokoloff, 2002. "Exports and Manufacturing Productivity in East Asia: A Comparative Analysis with Firm-Level Data," NBER Working Papers 8894, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Valeria, Gattai & Rajssa, Mechelli & Piergiovanna, Natale, 2016. "FDI and Heterogeneous Firms: Evidence from BRIC Countries," Working Papers 322, University of Milano-Bicocca, Department of Economics, revised 18 Jan 2016.

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