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Infrastructure Bottlenecks and Dual-Channel Exporters

Author

Listed:
  • Xiao Feng

    (School of Economics, Nankai University, China)

  • Yongjin Wang

    (School of Economics, Nankai University, China)

  • Laixun Zhao

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

Abstract

This paper investigates how infrastructure bottlenecks affect a firm's export mode. We find that under infrastructure bottlenecks, the most efficient firms become the so-called "dual-channel exporters", which export only a fraction of their products directly, with the remaining products exported through intermediaries. Using linked annual survey of industrial production and transaction-level customs datasets in China, we document that a significant share of firms are the dual-channel exporters. Further, these exporters are more productive than the direct and indirect exporters. Our quantitative model suggests that the elimination of exporting capacity constraint arising from infrastructure bottlenecks leads to substantial aggregate productivity growth via improved resource reallocation.

Suggested Citation

  • Xiao Feng & Yongjin Wang & Laixun Zhao, 2019. "Infrastructure Bottlenecks and Dual-Channel Exporters," Discussion Paper Series DP2019-19, Research Institute for Economics & Business Administration, Kobe University, revised Oct 2019.
    • Handle: RePEc:kob:dpaper:dp2019-19
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    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2019-19.pdf
    File Function: Revised version, 2019
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    More about this item

    Keywords

    Infrastructure bottlenecks; Dual-channel Exporters; Productivity; Capacity constraint; Resource misallocation;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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