| Abstract | In the frame of firm heterogeneity model, working on data from China Industrial Firms Database over 2001-2007, this paper first observes the characteristics of exporters, differences between exporters and non-exporters in China and then investigates the determinants of firms’ export behavior by using Probit model. We find that, with factors input, firm scale, firm type and other firm’s characters controlled, productivity has an insignificant effect on firm’s export behavior for China’s pervasive processing trade targeting foreign market, which distorted the relation between productivity and export behavior of firms. Furthermore, if we exclude the role of processing trade, productivity is an important determinant of firms’ export behavior, i.e. firm heterogeneity model is still well applicable in China. |