Exporting from China: The Determinants of Trade Status

Russell Cooper, Guan Gong, Guanliang Hu and Ping Yan

No 28289, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper studies the exporting decision of Chinese manufacturing firms. The economic framework stresses the dynamic decision by both state controlled and private entities to export in a model with labor adjustment costs. In this complex environment, a simple decision rule whereby export status depends only on current productivity does not hold. Nor does this rule match data patterns. The estimated model is used to understand the factors that influence export status. The analysis highlights the economic significance of labor adjustment costs in shaping both employment and trade dynamics.

JEL-codes: E24 F14 F16 (search for similar items in EconPapers)
Date: 2020-12
New Economics Papers: this item is included in nep-cna, nep-int and nep-mac
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