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Using Export Market Performance to Evaluate Regional Preferential Policies in China

Annette Schminke and Johannes Van Biesebroeck ()
Authors registered in the RePEc Author Service: Annette Broocks ()

No 8696, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We apply program evaluation methods to analyze the effectiveness of two types of preferential regional policy programs in China's manufacturing sector. Economic and Technological Development Zones (ETDZs) aim to facilitate firms' internationalization strategies. Science and Technology Industrial Parks (STIPs) aim to generate technology spillovers. We focus on various dimensions of export market performance as objective indicators for the upgrading of product quality and firm operations. We compare startups that locate into one of these zones with other startups, while controlling for self-selection. The findings suggest that firms locating in an ETDZ do much better on sheer quantity of trade, i.e. the total volume of exports and number of destinations are higher. Firms locating in a STIP perform best on 'quality' dimensions, in particular they fetch higher export prices, even by destination and especially for firms producing machinery.

Keywords: ETDZ; innovation policy; regional economics; spillover; STIP; treatment effects (search for similar items in EconPapers)
JEL-codes: F14 L2 R11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-tra
Date: 2011-12
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Related works:
Journal Article: Using export market performance to evaluate regional preferential policies in China (2013) Downloads
Working Paper: Using export market performance to evaluate regional preferential policies in China (2011) Downloads
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