Market entry and the dynamics of export product quality: Evidence from Chinese manufacturing firms

Dongwei He, Yunfei Wang and Kai You

Economic Analysis and Policy, 2023, vol. 78, issue C, 692-706

Abstract: The quality of export products is essential for understanding the dynamics of international trade. This study deploys a theoretical framework to illustrate that the optimal policy for a new entrant firm exporting to the United States from China is to set the product quality as relatively low initially and improve it over time as the product gains recognition from U.S. consumers. Using data on transaction-level Chinese exports to the U.S. data between 2000 and 2013, we quantify the export product quality and its trend. Empirical results are consistent with model implications. Our findings are robust to alternative specifications and extensions.

Keywords: Export quality; Export experience; Quality upgrading; China (search for similar items in EconPapers)
JEL-codes: F12 F14 O24 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0313592623000504
Full text for ScienceDirect subscribers only

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:eee:ecanpo:v:78:y:2023:i:c:p:692-706

DOI: 10.1016/j.eap.2023.04.001

Access Statistics for this article

Economic Analysis and Policy is currently edited by Clevo Wilson

More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().