IDEAS home Printed from https://ideas.repec.org/a/zbw/ifweej/20168.html
   My bibliography  Save this article

Exporting firm dynamics and productivity growth: Evidence from China

Author

Listed:
  • Huang, Xiaobing
  • Liu, Xiaolian

Abstract

This paper assesses the productivity growth contributed by the dynamics of exporting firms using firm-level production data of Chinese firms from 2005 to 2009. The authors apply the dynamic Olley-Pakes decomposition with entry and exit proposed by Melitz and Polanec (Dynamic Olley-Pakes Productivity Decomposition with Entry and Exit, 2015), which allows them to decompose the change in aggregate productivity into contributions of surviving firms, entering firms and exiting firms. The study shows that in China, the combined contribution of the three components capturing reallocation amounts to almost half of the change in aggregate productivity. The between-firm market reallocation is found to contribute the most among the three components, followed by the exit of inefficient producers. It also shows that the aggregate productivity growth generated by the dynamics of exporting firms in foreign markets varies according to ownership, location and industry. More specifically, the data suggest that private firms, firms situated in the eastern region of China and firms from high-concentration industries provide a higher contribution to the growth of aggregate productivity.

Suggested Citation

  • Huang, Xiaobing & Liu, Xiaolian, 2016. "Exporting firm dynamics and productivity growth: Evidence from China," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 10, pages 1-31.
  • Handle: RePEc:zbw:ifweej:20168
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.5018/economics-ejournal.ja.2016-8
    Download Restriction: no

    File URL: https://www.econstor.eu/bitstream/10419/130233/1/856112704.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. David Dollar & Shang-Jin Wei, 2007. "Das (Wasted) Kapital; Firm Ownership and Investment Efficiency in China," IMF Working Papers 07/9, International Monetary Fund.
    2. Chang-Tai Hsieh & Peter J. Klenow, 2009. "Misallocation and Manufacturing TFP in China and India," The Quarterly Journal of Economics, Oxford University Press, vol. 124(4), pages 1403-1448.
    3. Brandt, Loren & Van Biesebroeck, Johannes & Zhang, Yifan, 2012. "Creative accounting or creative destruction? Firm-level productivity growth in Chinese manufacturing," Journal of Development Economics, Elsevier, vol. 97(2), pages 339-351.
    4. Eric Bartelsman & John Haltiwanger & Stefano Scarpetta, 2013. "Cross-Country Differences in Productivity: The Role of Allocation and Selection," American Economic Review, American Economic Association, vol. 103(1), pages 305-334, February.
    5. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    6. Griliches, Zvi & Regev, Haim, 1995. "Firm productivity in Israeli industry 1979-1988," Journal of Econometrics, Elsevier, vol. 65(1), pages 175-203, January.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    exporting firms; firm dynamics; productivity growth; reallocation effect; China;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:ifweej:20168. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics). General contact details of provider: http://edirc.repec.org/data/iwkiede.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.