Firm Quality and Productivity Among Chinese Exporters
نویسندگان
چکیده
In this paper we use micro data on both trade and production for a sample of large Chinese manufacturing firms in the footwear industry from 2002 − 2006 to estimate an empirical model of export demand, pricing, and market participation by destination market. We use the model to construct indexes of firm product quality, productivity, and export market capability. The empirical results indicate substantial firm heterogeneity in both the quality and productivity dimensions with quality being a more important determinant of the differences in export market capability. Our measure of firm export capability is very useful in summarizing differences between firms based on the length of time they export to a destination and the number of destination markets they participate in. Firms that are longterm exporters in a destination have a higher capability index, on average, than firms that do not export to the destination. Firms that export to many destinations have higher average capability.
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