TY - JOUR
T1 - How you export matters
T2 - Export mode, learning and productivity in China
AU - Bai, Xue
AU - Krishna, Kala
AU - Ma, Hong
N1 - Publisher Copyright:
© 2016 Elsevier B.V.
PY - 2017/1/1
Y1 - 2017/1/1
N2 - This paper shows that how firms export (directly or indirectly via intermediaries) matters. We develop and estimate a dynamic discrete choice model that allows learning-by-exporting on the cost and demand side as well as sunk/fixed costs to differ by export mode. We find that demand and productivity evolve more favorably under direct exporting, though the fixed/sunk costs of this option are higher. Our results suggest that had China not liberalized its direct trading rights when it joined the WTO, its exports and export participation would have been 26 and 33% lower respectively.
AB - This paper shows that how firms export (directly or indirectly via intermediaries) matters. We develop and estimate a dynamic discrete choice model that allows learning-by-exporting on the cost and demand side as well as sunk/fixed costs to differ by export mode. We find that demand and productivity evolve more favorably under direct exporting, though the fixed/sunk costs of this option are higher. Our results suggest that had China not liberalized its direct trading rights when it joined the WTO, its exports and export participation would have been 26 and 33% lower respectively.
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U2 - 10.1016/j.jinteco.2016.10.009
DO - 10.1016/j.jinteco.2016.10.009
M3 - Article
AN - SCOPUS:84996636473
SN - 0022-1996
VL - 104
SP - 122
EP - 137
JO - Journal of International Economics
JF - Journal of International Economics
ER -