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Do bigger and older firms learn more from exporting? — Evidence from China

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  • Liu, Bih Jane

Abstract

The literature has extensively discussed whether firms benefit from exporting (referred to as the learning-by-exporting (LBE) effect), but the empirical evidence is inconclusive. This paper draws on firm experience (age) to explain this question by using Chinese firm-level data for the period 1998–2007 to examine whether younger firms learn more from exporting than older firms. Employing propensity score matching and the difference-in-difference approach, we show significant LBE effects for older firms, especially those engaging in R&D activities, having large-scale production, and under private ownership. However, the yearly or cumulative LBE effects are either insignificant or rather limited for younger firms regardless of their R&D status and firm size.

Suggested Citation

  • Liu, Bih Jane, 2017. "Do bigger and older firms learn more from exporting? — Evidence from China," China Economic Review, Elsevier, vol. 45(C), pages 89-102.
    • Handle: RePEc:eee:chieco:v:45:y:2017:i:c:p:89-102
    DOI: 10.1016/j.chieco.2017.06.005
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    Cited by:

    1. Sung, Bongsuk, 2019. "Do government subsidies promote firm-level innovation? Evidence from the Korean renewable energy technology industry," Energy Policy, Elsevier, vol. 132(C), pages 1333-1344.
    2. Suqin Shen & Sunil Venaik & Yunxia Zhu, 2023. "A Dynamic Model of Internationalization and Innovation in Emerging Market Enterprises: Knowledge Exploration, Transformation, and Exploitation," Management International Review, Springer, vol. 63(4), pages 561-601, August.
    3. Bansal, Manish & Kumar, Ashish & Bhattacharyya, Asit & Bashir, Hajam Abid, 2023. "Predictors of revenue shifting and expense shifting: Evidence from an emerging economy," Journal of Contemporary Accounting and Economics, Elsevier, vol. 19(1).
    4. Yu, Zhuangxiong & Cheng, Jiajia & Mukhopadhaya, Pundarik & Dong, Jiemiao, 2023. "Do information spillovers across products aggravate product market monopoly? An examination with Chinese data," Economic Modelling, Elsevier, vol. 125(C).
    5. Huiming Liu & Su Wu & Chongwen Zhong & Ying Liu, 2020. "The Sustainable Effect of Operational Performance on Financial Benefits: Evidence from Chinese Quality Awards Winners," Sustainability, MDPI, vol. 12(5), pages 1-23, March.

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