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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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The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

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