Exports, Technical Progress and Productivity Growth in Chinese Manufacturing Industries

Xiaolan Fu

Working Papers from Centre for Business Research, University of Cambridge

Abstract: Theories suggesting either static or dynamic productivity gains derived from exports often assume the prior existence of a perfect market. In the presence of market failure, however, the competition effect and the resource reallocation effect of exports on productive efficiency may be greatly reduced; and there may actually be disincentives for innovation. This paper analyses the impact of exports on total factor productivity (TFP) growth in a transition economy using a panel of Chinese manufacturing industries over the period 1990-1997. TFP growth is estimated by employing a non-parametric approach and is decomposed into technical progress and efficiency change. We have not found evidence suggesting significant productivity gains at the industry level resulting from exports. Findings of the current study suggest that, for exports to generate significant positive effect on TFP growth, a well?developed domestic market and a neutral, outward-oriented policy are necessary.

Keywords: exports; industrial efficiency; technical progress; productivity (search for similar items in EconPapers)
JEL-codes: F10 O12 O30 (search for similar items in EconPapers)
Date: 2004-04
New Economics Papers: this item is included in nep-dev, nep-eff and nep-sea
Note: PRO-1
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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