Driving Force of Quality Upgrading in China——An Analysis Based on Multiproduct Firm
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| Title | Driving Force of Quality Upgrading in China——An Analysis Based on Multiproduct Firm
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| Author | Huang Xianhai and Chen Hangyu |
| Organization | Zhejiang University |
| Email | hxhhz@126.com；chenhangyu1205@sina.com |
| Key Words | Product Quality of Exports; Multi-product Firm; Endogenous Driving Force; Exogenous Driving Force |
| Abstract | Under the framework of multi-product model, this article endogenize the quality to investigate the mechanism of quality upgrading based on dual heterogeneity—productivity among firms and quality within firm. We find that the export quality is determined by the productivity, trade cost, export market scale, and product switching factors. Then we provide a new method to estimate the firm’s product quality of exports. Based on the 2000-2014 Chinese Customs Database, we give a more accurate estimation of product quality of exports on firm-country-year-trade term-HS8 level than other micro-level method when summarizing the micro-level quality to the macro-level. We also take a further research in trend and influence of driving force, maintained that the technological-progress is the major driving force but shows inverted “U” change trend, product-switching and trade-facilitating maintain stable which are the core of driving force, demand-influencing keeps increasing but has a little effect. |
| Serial Number | WP1369 |
| Time | 2019-04-30 |
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