Markups of Chinese exporters: Export discount and product choice

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Abstract

Economists find that exporters usually have higher markups than non-exporters. Our work, however, shows that Chinese exporters have lower markups than non-exporters in China. The result is economically and statistically significant. We argue that Chinese exporters have lower markups because they tend to produce products that usually have low markups. The finding is consistent with the hypothesis that China has a comparative advantage in low-markup products.

Original languageEnglish (US)
Pages (from-to)2383-2409
Number of pages27
JournalWorld Economy
Volume44
Issue number8
DOIs
StatePublished - Aug 2021

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics
  • Political Science and International Relations

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