Trade and Management

Nicholas Bloom, Kalina Manova, John van Reenen, Stephen Teng Sun and Zhihong Yu
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Stephen Teng Sun: City University of Hong Kong
Zhihong Yu: University of Nottingham

The Review of Economics and Statistics, 2021, vol. 103, issue 3, 443-460

Abstract: We study how management practices shape export performance using matched production-trade-management data for Chinese and American firms and a randomized control trial in India. Better-managed firms are more likely to export, sell more products to more destinations, and earn higher export revenues and profits. They export higher-quality products at higher prices and lower quality-adjusted prices. They import a wider range of inputs and inputs of higher quality and price, from more advanced countries. We rationalize these patterns with a heterogeneous-firm model in which effective management improves performance by raising production efficiency and quality capacity.

Date: 2021
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