How you export matters: Export mode, learning and productivity in China

Xue Bai, Kala Krishna, Hong Ma

Research output: Contribution to journalArticle

13 Citations (Scopus)

Abstract

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.

Original languageEnglish (US)
Pages (from-to)122-137
Number of pages16
JournalJournal of International Economics
Volume104
DOIs
StatePublished - Jan 1 2017

Fingerprint

Productivity
China
Discrete choice models
Learning by exporting
Sunk costs
Costs
Dynamic discrete choice
Fixed costs
Participation
Intermediaries
Exporting

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

Cite this

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How you export matters : Export mode, learning and productivity in China. / Bai, Xue; Krishna, Kala; Ma, Hong.

In: Journal of International Economics, Vol. 104, 01.01.2017, p. 122-137.

Research output: Contribution to journalArticle

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