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Exporting to high-tech countries versus exporting to low-tech countries: Theory and evidence from firm-level energy efficiency in China

Author

Listed:
  • Huang, Geng
  • Lin, Xi
  • He, Ling-Yun

Abstract

Recognizing that trade may generate different environmental outcomes depending on where firms export is essential for understanding the broader implications of globalization. This paper uses Chinese firm data to show that exporting to different countries has distinct effects on energy performance. Exporting products to technologically advanced countries typically results in more significant enhancements in energy efficiency and promotes bigger learning-by-exporting and innovation effects, leading to substantial improvements in firm’s energy efficiency compared to exporting to low-tech countries. Besides, exporting to high-tech rather than low-tech destinations raises firms’ output without significantly affecting energy use, implying that efficiency gains operate mainly through scale expansion. This highlights the importance of considering export destinations in analyzing environmental effects of trade.

Suggested Citation

  • Huang, Geng & Lin, Xi & He, Ling-Yun, 2026. "Exporting to high-tech countries versus exporting to low-tech countries: Theory and evidence from firm-level energy efficiency in China," Structural Change and Economic Dynamics, Elsevier, vol. 80(C), pages 181-197.
    • Handle: RePEc:eee:streco:v:80:y:2026:i:c:p:181-197
    DOI: 10.1016/j.strueco.2026.07.012
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    Keywords

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    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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