Can Production Subsidies Foster Export Activity? Evidence from Chinese Firm Level Data
Abstract
Using a unique firm level data set from the Chinese manufacturing sector, this paper analyses the impact of production subsidies on firms’ export performance. It documents robust evidence that production subsidies stimulate export activity, although this effect is conditional on firm characteristics. In particular, the beneficial impact of subsidies is found to be more pronounced amongst profit-making firms, firms in capital intensive industries and those with previous exporting experience. Compared to firm characteristics, the extent of heterogeneity across ownership structure (SOEs, collectives and privately-owned firms) proves to be relatively less important.Download Info
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Bibliographic Info
Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6052.Length:
Date of creation: Jan 2007
Date of revision:
Handle: RePEc:cpr:ceprdp:6052
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Related research
Keywords: China; endogenous tobit; exporting; subsidies;Find related papers by JEL classification:
- F1 - International Economics - - Trade
- O2 - Economic Development, Technological Change, and Growth - - Development Planning and Policy
- P3 - Economic Systems - - Socialist Institutions and Their Transitions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-01-28 (All new papers)
- NEP-CNA-2007-01-28 (China)
- NEP-DEV-2007-01-28 (Development)
- NEP-INT-2007-01-28 (International Trade)
- NEP-SEA-2007-01-28 (South East Asia)
- NEP-TRA-2007-01-28 (Transition Economics)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Sourafel Girma & Holger Görg & Joachim Wagner, 2009.
"Subsidies and Exports in Germany. First Evidence from Enterprise Panel Data,"
Applied Economics Quarterly (formerly: Konjunkturpolitik),
Duncker & Humblot, Berlin, vol. 55(3), pages 179-198.
- Sourafel Girma & Holger Görg & Joachim Wagner, 2009. "Subsidies and Exports in Germany. First Evidence from Enterprise Panel Data," Kiel Working Papers 1481, Kiel Institute for the World Economy.
- Girma, Sourafel & Görg, Holger & Wagner, Joachim, 2009. "Subsidies and Exports in Germany: First Evidence from Enterprise Panel Data," IZA Discussion Papers 4076, Institute for the Study of Labor (IZA).
- Sourafel Girma & Holger Görg & Joachim Wagner, 2009. "Subsidies and Exports in Germany First Evidence from Enterprise Panel Data," Working Paper Series in Economics 117, University of Lüneburg, Institute of Economics.
- Jo VAN BIESEBROECK & Emily YU & Shenjie CHEN, 2011.
"The impact of trade promotion services on Canadian exporter performance,"
Center for Economic Studies - Discussion papers
ces11.21, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
- Van Biesebroeck, Johannes & Yu, Emily & Chen, Shenjie, 2010. "The impact of trade promotion services on Canadian exporter performance," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/267252, Katholieke Universiteit Leuven.
- Johannes VAN BIESEBROECK & Emily YU & Shenjie CHEN, 2010. "The impact of trade promotion services on Canadian exporter performance," Center for Economic Studies - Discussion papers ces10.14, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
- Van Biesebroeck, Johannes & Yu, Emily & Chen, Shenjie, 2011. "The impact of trade promotion services on Canadian exporter performance," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/318020, Katholieke Universiteit Leuven.
- Chen, Shenjie & Van Biesebroeck, Johannes & Yu, Emily, 2011. "The Impact of Trade Promotion Services on Canadian Exporter Performance," CEPR Discussion Papers 8597, C.E.P.R. Discussion Papers.
- Wim Naudé, 2009.
"“Rushing in where angels fear to tread”?: The early internationalization of indigenous Chinese firms,"
Journal of Chinese Economic and Foreign Trade Studies,
Emerald Group Publishing, vol. 2(3), pages 163-177, October.
- Naude, Wim, 2009. ".Rushing in where Angels Fear to Tread?.: The Early Internationalization of Indigenous Chinese Firms," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Wim Naudé & Stephanié Rossouw, 2010.
"Early international entrepreneurship in China: Extent and determinants,"
Journal of International Entrepreneurship,
Springer, vol. 8(1), pages 87-111, March.
- Naude, Wim & Rossouw, Stephanie, 2009. "Early International Entrepreneurship in China: Extent and Determinants," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Wim Naudé & Marianne Matthee, 2011. "The impact of transport costs on new venture internationalisation," Journal of International Entrepreneurship, Springer, vol. 9(1), pages 62-89, March.
- Kolesnikova, Irina, 2010. "State Aid for Industrial Enterprises in Belarus: Remedy or Poison?," MPRA Paper 22403, University Library of Munich, Germany.
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