EconPapers    
Economics at your fingertips  
 

Managing Trade: Evidence from China and the US

Nicholas Bloom (), Kalina Manova, John van Reenen (), Stephen Teng Sun and Zhihong Yu

No 7113, CESifo Working Paper Series from CESifo Group Munich

Abstract: We present a heterogeneous-firm model in which management ability increases both pro- duction efficiency and product quality. Combining six micro-datasets on management prac- tices, production and trade in Chinese and American firms, we find broad support for the model’s predictions. First, better managed firms are more likely to export, sell more products to more destination countries, and earn higher export revenues and profits. Second, better managed exporters have higher prices, higher quality, and lower quality-adjusted prices. Finally, they also use a wider range of inputs, higher quality and more expensive inputs, and imported inputs from more advanced countries. The structural estimates indicate that management is important for improving production efficiency and product quality in both countries, but it matters more in China than in the US, especially for product quality. Panel analysis for the US and a randomized control trial in India suggest that management exerts causal effects on product quality, production efficiency, and exports. Poor management practices may thus hinder trade and growth, especially in developing countries.

Keywords: management; exports; product quality; productivity (search for similar items in EconPapers)
JEL-codes: F10 F14 F23 L20 O19 O32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cna and nep-int
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://www.cesifo-group.de/DocDL/cesifo1_wp7113.pdf (application/pdf)

Related works:
Working Paper: MANAGING TRADE: EVIDENCE FROM CHINA AND THE US (2019) Downloads
Working Paper: Managing Trade: Evidence from China and the US (2018) Downloads
Working Paper: Managing Trade: Evidence from China and the US (2018) Downloads
Working Paper: Managing trade: evidence from China and the US (2018) Downloads
Working Paper: Managing Trade: Evidence from China and the US (2018) Downloads
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:ces:ceswps:_7113

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Group Munich Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().

 
Page updated 2019-10-11
Handle: RePEc:ces:ceswps:_7113