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

Xue Bai, Kala Krishna () and Hong Ma

Journal of International Economics, 2017, vol. 104, issue C, 122-137

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.

Keywords: Export modes; Productivity evolution; Learning-by-exporting; Dynamic discrete choice (search for similar items in EconPapers)
JEL-codes: D24 F13 F14 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (83)

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Working Paper: How You Export Matters: Export Mode, Learning and Productivity in China (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:104:y:2017:i:c:p:122-137

DOI: 10.1016/j.jinteco.2016.10.009

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