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Jump further or climb higher? Impact of different export upgrading strategies on exporter survival

Author

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  • Zhou, Yi
  • Chen, Xianjuan
  • Zou, Donghan

Abstract

While product upgrading enhances firms’ export market competitiveness, it is also risky. This study explores the effects of product-level upgrading on exporter survival and how industrial policy shapes these effects. Using a Chinese Customs Trade Statistics sample that spans 2000–2011, we consider two dimensions of export upgrading, horizontal product upgrading by jumping into a new product launch and vertical product upgrading by climbing the “quality ladder” of an existing product. Our results reveal that export upgrading enhances exporters’ staying power in the export market. More importantly, the type of upgrading matters, and firms with vertical product upgrading have a relatively higher probability of survival. Furthermore, upgraded firms with local government support are more likely to maintain their presence in the export market.

Suggested Citation

  • Zhou, Yi & Chen, Xianjuan & Zou, Donghan, 2025. "Jump further or climb higher? Impact of different export upgrading strategies on exporter survival," Economic Analysis and Policy, Elsevier, vol. 88(C), pages 2098-2115.
    • Handle: RePEc:eee:ecanpo:v:88:y:2025:i:c:p:2098-2115
    DOI: 10.1016/j.eap.2025.11.022
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    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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