Export Survival Pattern and Determinants of Chinese Manufacturing Firms

Dahai Fu and Yanrui Wu
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Dahai Fu: School of International Trade and Economics Central University of Finance and Economics Beijing, China

No 13-18, Economics Discussion / Working Papers from The University of Western Australia, Department of Economics

Abstract: As the studies that are concerned with export entry have proliferated, less attention has been devoted to the study of export survival in foreign markets. This paper explores the patterns and determinants of export survival using the survey data of the Chinese manufacturing firms for the period 1998-2007. The methods include non-parametric techniques and the estimation of a discrete-time duration model. Our results suggest that the probability of exit is higher for the exporters at the starting period. We also find that large, highly productive and more export-oriented firms are more likely to survive. In addition, foreign ownership is found to be an important determinant of export survival, while state ownership would increase the risk of export failure.

Pages: 40 pages
Date: 2013
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