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China’s Multi-product Export Firms and Product Scope: Facts and Explanations
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TitleChina’s Multi-product Export Firms and Product Scope: Facts and Explanations  
AuthorQian Xuefeng, Wang Sheng and Chen Yongbing  
OrganizationSchool of Business Administration, Zhongnan University of Economics and Law 
Key WordsMulti-product Firm; Export Product Scope; The Extensive Margin within Firm; Trade Structure Adjustment 
AbstractBased on the multi-product firm heterogeneous trade model, this paper overcomes the serious shortage of the single product assumption. Using the databases of the Chinese Customs Trade Statistics (CCTS) and the Chinese Annual Survey of Industrial Firms (CASIF) from 2000-2005, this paper depicts comprehensively the stylized facts of China’s multi-product firms and product scope, and makes use of the extended gravity model to reveal the economic factors which affecting on the firm’s product scope. The main findings are: the multi-product firms dominate China’s exports; about 44% of China’s export growth is from the extensive margin within firm in 2000-2005. Hereafter, using the extended gravity model, we regress according to the whole sample, firm ownership and trade pattern, the results are robust. Our research reinterprets the power source of China’s export growth----the extensive margin within firm is discovered firstly, which overturns the results of the single product firm heterogeneous trade model and reminds us to attention the attribution of the extensive margin within firm when we adjust trade structure. 
Serial NumberWP127 
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