Do export demand shocks affect the export quality of multi‐product firms? Evidence from China

Lei Wang, Xianhai Huang and Qianyun Sun

Review of International Economics, 2024, vol. 32, issue 3, 1071-1103

Abstract: We extend the theoretical model of Antoniades (2015, Heterogeneous Firms, quality, and trade. Journal of International Economics, 95(2), 263–273) to analyze the impact of export demand shocks on the quality of multi‐product firms. Using Chinese micro‐data, we find that positive export demand shocks significantly promote the export quality of multi‐product firms, but the impact decreases as firm productivity increases. In addition to the scale effect and the competition effect, the intensified competition caused by the expansion of export demand will induce firms to skew their export sales towards the best performing products. Our findings elucidate the importance of the resource reallocation effect in the study of trade‐induced export performance.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/roie.12715

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:reviec:v:32:y:2024:i:3:p:1071-1103

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0965-7576

Access Statistics for this article

Review of International Economics is currently edited by E. Kwan Choi

More articles in Review of International Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().