The nexus between product sophistication and export survival: Evidence from China

Zongsen Zou, Yu Zhang, Xin Li and Xiuling Wang

Structural Change and Economic Dynamics, 2023, vol. 67, issue C, 480-502

Abstract: This study investigates the survival of China's bilateral export flows at the six-digit HS level over the period 2002–2020. The results reveal that export relationships defined as product-destination pairs are highly dynamic and short-lived. Most export spells last no longer than five years, with a median duration of only two years. Product sophistication is a crucial determinant in establishing and stabilizing export relationships. This conclusion remains robust even after accounting for various measures for product sophistication, alternative definitions of export spells, and potential biases arising from simultaneity, sample selection, and data aggregation. Further analyses demonstrate that comparative advantage plays a positive role in moderating the nexus between product sophistication and export survival. In contrast, destination income poses a reverse U-shaped moderating effect on the relationship. The per capita income corresponding to the maximum moderating effect is US$ 6996.94, or the 56th percentile of the variable. Income distance accounts for the nonlinear effect of per capita destination income on export survival. These findings provide insights into China's rapid export growth and have significant implications for policymakers in China and other emerging economies striving for global trade success.

Keywords: Product sophistication; Export relationship; Duration; Survival analysis; China (search for similar items in EconPapers)
JEL-codes: C41 F14 F19 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0954349X23001285
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:streco:v:67:y:2023:i:c:p:480-502

DOI: 10.1016/j.strueco.2023.09.010

Access Statistics for this article

Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen

More articles in Structural Change and Economic Dynamics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().