TY - JOUR
T1 - How you export matters
T2 - Export mode, learning and productivity in China
AU - Bai, Xue
AU - Krishna, Kala
AU - Ma, Hong
N1 - Funding Information:
Krishna is grateful to the Cowles Foundation at Yale and to the Economics Department at NYU for support as a visitor, and to the World Bank for research support. The authors are grateful to the National Natural Science Foundation of China (NSFC) for support under Grant No. 71203114 . We thank the China Data Center at Tsinghua University for access to the datasets. We are extremely grateful to Mark Roberts for his intellectual generosity and for sharing his codes with us. We also thank Andrew Bernard, Paula Bustos, Russell Cooper, Paul Grieco, Min Hua, Wolfgang Keller, Amit Khandelwal, Jicheng Liu, Chia Hui Lu, Nina Pavcnik, Joel Rodrigue, Daniel Trefler, James Tybout, Neil Wallace, Shang-Jin Wei, Adrian Wood, Stephen Yeaple, and Jing Zhang for extremely useful comments on an earlier draft. We would like to thank participants at the Penn State–Tsinghua Conference on the Chinese Economy, 2012, the CES-IFO Area Conference on the Global Economy, 2012, the Midwest International Trade Meetings, 2012, the Tsinghua–Columbia Conference in International Economics, 2012, the Yokohama Conference, 2012, the NBER ITI spring meetings, 2013, the Penn State JMP conference, 2013, the Cornell PSU Macro Conference, 2013, ERWIT, 2013, InsTED, 2013, Princeton Summer Workshop, 2013 and the Yale International Trade workshop 2013, NBER Chinese Economy Meeting 2014, and Barcelona GSE Summer Forum 2014 for comments. We are also grateful to seminar participants at the University of Virginia, Toronto, Toulouse, Paris, Namur, Kentucky, Brock, Auckland, and the City University of Hong Kong, Fudan University, BNU, Guanghua School of Peking University, Wuhan University and CUFE for comments.
Publisher Copyright:
© 2016 Elsevier B.V.
PY - 2017/1/1
Y1 - 2017/1/1
N2 - This paper shows that how firms export (directly or indirectly via intermediaries) matters. We develop and estimate a dynamic discrete choice model that allows learning-by-exporting on the cost and demand side as well as sunk/fixed costs to differ by export mode. We find that demand and productivity evolve more favorably under direct exporting, though the fixed/sunk costs of this option are higher. Our results suggest that had China not liberalized its direct trading rights when it joined the WTO, its exports and export participation would have been 26 and 33% lower respectively.
AB - This paper shows that how firms export (directly or indirectly via intermediaries) matters. We develop and estimate a dynamic discrete choice model that allows learning-by-exporting on the cost and demand side as well as sunk/fixed costs to differ by export mode. We find that demand and productivity evolve more favorably under direct exporting, though the fixed/sunk costs of this option are higher. Our results suggest that had China not liberalized its direct trading rights when it joined the WTO, its exports and export participation would have been 26 and 33% lower respectively.
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U2 - 10.1016/j.jinteco.2016.10.009
DO - 10.1016/j.jinteco.2016.10.009
M3 - Article
AN - SCOPUS:84996636473
SN - 0022-1996
VL - 104
SP - 122
EP - 137
JO - Journal of International Economics
JF - Journal of International Economics
ER -