Firm performance and trade with low-income countries: Evidence from China

Hans-Jörg Schmerer and Luhang Wang
Additional contact information
Hans-Jörg Schmerer: Institute for Employment Research (IAB), Nuremberg, Germany
Luhang Wang: Xiamen University

No 201419, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "Do firms in developing countries shift trade towards developed economies as a result of high economic growth? The matched customs-manufacturing firm data used in this study confront this hypothesized link with empirical evidence. Our analysis reveals a rising low-income country trade share around and after China's accession to the World Trade Organization. Based on this stylized fact, we analyze the link between firm characteristics and trade with low-income countries. We find evidence for sequential sorting into different export-modes according to firm-productivity: i) only the most productive firms export to low-income countries, ii) exporting to low-income countries is mostly coupled to exporting to high-income countries, and iii) firms that switch to export to markets with higher potential are younger than firms that switch to export to both high- and low-income markets. Moreover, we find that firms tend to start exporting through specialization on high-income markets before diversifying to both type of markets." (Author's abstract, IAB-Doku) ((en))

Keywords: China; Außenhandelsverflechtung; Entwicklungsländer; Export; Industrieländer (search for similar items in EconPapers)
JEL-codes: F10 F60 O10 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2014
New Economics Papers: this item is included in nep-bec, nep-cna, nep-cse, nep-int and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://doku.iab.de/discussionpapers/2014/dp1914.pdf

Related works:
Working Paper: Firm Performance and Trade with Low-Income Countries: Evidence from China (2014)
Working Paper: Firm Performance and Trade with Low-Income Countries: Evidence from China (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:201419

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