Ownership Structures, Trade patterns and Export-Productivity Relations——Theory and Chinese Evidence
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| Title | Ownership Structures, Trade patterns and Export-Productivity Relations——Theory and Chinese Evidence
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| Author | Yu Chunhai and Zheng Yue |
| Organization | Renmin University of China |
| Email | yuchunhai@ruc.edu.cn；joannazhengyue@gmail.com |
| Key Words | Heterogeneous Firm Model; Ownership Structure; Trade Pattern; Export-Productivity Relation |
| Abstract | This paper introduces ownership structures and trade modes into standard heterogeneous firm trade model to analyze influences of these factors on the productivity rank of export firms and performance of export firms relative to firms with only domestic sales. Based on these, we test the theoretical predictions using a matched data set of Chinese manufactures data and customs data of Chinese exporters. This paper reveals several specific characteristics of Chinese firms’ export-productivity performance: (1) Domestic-funded firms specializing in exporting via intermediate trade pattern and foreign-funded firms specializing in exporting via ordinary trade pattern tend to have lower productivity than those with domestic sales only. (2) Among foreign-funded firms specializing in exporting, those with processing trade pattern tend to have the highest productivity, while those with ordinary trade pattern have the lowest productivity. (3) Among domestic-funded firms specializing in exporting, those with processing trade pattern tend to have the highest productivity, while those with intermediate trade pattern have the lowest productivity. This paper expands the research perspective of heterogeneous firm trade model by focusing on factors other than productivity, such as methods and choices of overcoming costs of entering foreign markets. This leads to a conclusion that in order to study the competency of firms in an open economy, we go beyond the narrow view of productivity and focus more on factors that could affect the competency of firms. |
| Serial Number | WP692 |
| Time | 2014-09-09 |
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