Can Production Subsidies Explain China's Export Performance? Evidence from Firm-level Data
Abstract
This paper analyses the relationship between production subsidies and firms' export performance using a very comprehensive and recent firm-level database and controlling for the endogeneity of subsidies. It documents robust evidence that production subsidies stimulate export activity at the intensive margin, although this effect is conditional on firm characteristics. In particular, the positive relationship between subsidies and the intensive margin of exports is strongest among profit-making firms, firms in capital-intensive industries, and those located in non-coastal regions. Compared to firm characteristics, the extent of heterogeneity across ownership structure (SOEs, collectives, and privately owned firms) proves to be relatively less important. Copyright The editors of the "Scandinavian Journal of Economics" 2009 .Download Info
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Bibliographic Info
Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.
Volume (Year): 111 (2009)
Issue (Month): 4 (December)
Pages: 863-891
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Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442
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Related research
Keywords:Other versions of this item:
- Zhihong Yu & Yundan Gong & Sourafel Girma & Holger Görg, 2008. "Can production subsidies explain China's export performance? Evidence from firm level data," Kiel Working Papers 1442, Kiel Institute for the World Economy.
- F1 - International Economics - - Trade
- O2 - Economic Development, Technological Change, and Growth - - Development Planning and Policy
- P3 - Economic Systems - - Socialist Institutions and Their Transitions
References
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- Branstetter, Lee G. & Feenstra, Robert C., 2002.
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Prud'homme, Dan, 2012. "Dulling the Cutting Edge: How Patent-Related Policies and Practices Hamper Innovation in China," MPRA Paper 43299, University Library of Munich, Germany, revised Dec 2012.
- Markus Eberhardt & Christian Helmers & Zhihong Yu, .
"Is the Dragon Learning to Fly? An Analysis of the Chinese Patent Explosion,"
Discussion Papers
11/16, University of Nottingham, GEP.
- Markus Eberhardt & Christian Helmers & Zhihong Yu, 2011. "Is the Dragon Learning to Fly? An Analysis of the Chinese Patent Explosion," CSAE Working Paper Series 2011-15, Centre for the Study of African Economies, University of Oxford.
- Markus Eberhardt & Christian Helmers, 2011. "Is the Dragon Learning to Fly? An Analysis of the Chinese Patent Explosion," Economics Series Working Papers WPS/2011-15, University of Oxford, Department of Economics.
- Cadot, Olivier & Fernandes, Ana M. & Gourdon, Julien & Mattoo, Aaditya, 2012.
"Are the benefits of export support durable ? evidence from Tunisia,"
Policy Research Working Paper Series
6295, The World Bank.
- Olivier Cadot & Ana M. Fernandes & Julien Gourdon & Aaditya Mattoo, 2012. "Are the Benefits of Export Support Durable? Evidence from Tunisia," Working Papers 2012-30, CEPII research center.
- Zheng Wang & Zhihong Yu, . "Trading Partners, Traded Products, and Firm Performances: Evidence from China’s Exporter-Importers," Discussion Papers 11/13, University of Nottingham, GEP.
- Chen, Xing & Munasib, Abdul & Roy, Devesh, 2012. "Financial reforms and international trade:," IFPRI discussion papers 1182, International Food Policy Research Institute (IFPRI).
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