Infrastructure Bottlenecks and Dual-Channel Exporters

Xiao Feng, Yongjin Wang and Laixun Zhao
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Xiao Feng: School of Economics, Nankai University, China
Yongjin Wang: School of Economics, Nankai University, China

No DP2019-19, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: This paper investigates how infrastructure bottlenecks affect a firm's export mode. We find that under infrastructure bottlenecks, the most efficient firms become the so-called "dual-channel exporters", which export only a fraction of their products directly, with the remaining products exported through intermediaries. Using linked annual survey of industrial production and transaction-level customs datasets in China, we document that a significant share of firms are the dual-channel exporters. Further, these exporters are more productive than the direct and indirect exporters. Our quantitative model suggests that the elimination of exporting capacity constraint arising from infrastructure bottlenecks leads to substantial aggregate productivity growth via improved resource reallocation.

Keywords: Infrastructure bottlenecks; Dual-channel Exporters; Productivity; Capacity constraint; Resource misallocation (search for similar items in EconPapers)
JEL-codes: F10 O18 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2019-09, Revised 2019-10
New Economics Papers: this item is included in nep-eff and nep-int
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https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2019-19.pdf Revised version, 2019 (application/pdf)

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