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Using Export Market Performance to Evaluate Regional Preferential Policies in China

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  • Schminke, Annette
  • Van Biesebroeck, Johannes

Abstract

We apply program evaluation methods to analyze the effectiveness of two types of preferential regional policy programs in China's manufacturing sector. Economic and Technological Development Zones (ETDZs) aim to facilitate firms' internationalization strategies. Science and Technology Industrial Parks (STIPs) aim to generate technology spillovers. We focus on various dimensions of export market performance as objective indicators for the upgrading of product quality and firm operations. We compare startups that locate into one of these zones with other startups, while controlling for self-selection. The findings suggest that firms locating in an ETDZ do much better on sheer quantity of trade, i.e. the total volume of exports and number of destinations are higher. Firms locating in a STIP perform best on 'quality' dimensions, in particular they fetch higher export prices, even by destination and especially for firms producing machinery.

Suggested Citation

  • Schminke, Annette & Van Biesebroeck, Johannes, 2011. "Using Export Market Performance to Evaluate Regional Preferential Policies in China," CEPR Discussion Papers 8696, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:8696
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Fabrice Defever & Alejandro Riaño, "undated". "China's Pure Exporter Subsidies," Discussion Papers 12/11, University of Nottingham, GEP.
    2. Johannes Van Biesebroeck & Jozef Konings & Christian Volpe Martincus, 2016. "Did export promotion help firms weather the crisis?," Economic Policy, CEPR;CES;MSH, vol. 31(88), pages 653-702.
    3. Fabrice Defever & Alejandro Riaño, 2016. "Protectionism through Exporting: Subsidies with Export Share Requirements in China," Discussion Papers 2016-03, University of Nottingham, GEP.
    4. Jerónimo Carballo & Georg Schaur & Christian Volpe Martincus, 2016. "Posts as Trade Facilitators," IDB Publications (Working Papers) 94576, Inter-American Development Bank.
    5. Joachim Wagner, 2013. "Micro-econometric studies of international firm activities and firm performance: introduction by guest editor," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(1), pages 1-3, March.
    6. Defever, Fabrice & Riaño, Alejandro, 2017. "Subsidies with export share requirements in China," Journal of Development Economics, Elsevier, vol. 126(C), pages 33-51.
    7. Peng Bin, 2016. "Dynamic Development of Regional Disparity in Mainland China: An Experimental Study Based on a Multidimensional Index," Sustainability, MDPI, Open Access Journal, vol. 8(12), pages 1-28, December.
    8. Guo, Di & Guo, Yan & Jiang, Kun, 2016. "Government-subsidized R&D and firm innovation: Evidence from China," Research Policy, Elsevier, vol. 45(6), pages 1129-1144.
    9. repec:eee:jcecon:v:45:y:2017:i:4:p:809-826 is not listed on IDEAS
    10. Simon Alder & Lin Shao & Fabrizio Zilibotti, 2016. "Economic reforms and industrial policy in a panel of Chinese cities," Journal of Economic Growth, Springer, vol. 21(4), pages 305-349, December.
    11. Jaime DE MELO & Marcelo OLARREAGA, 2017. "Trade Related Institutions and Development," Working Papers P199, FERDI.
    12. Zhao Chen & Sandra Poncet & Ruixiang Xiong, 2016. "Inter-industry relatedness and industrial-policy efficiency: Evidence from China's Export Processing Zones," Working Papers 2016-02, CEPII research center.
    13. World Bank Group, 2017. "Special Economic Zones," World Bank Other Operational Studies 29054, The World Bank.
    14. Fabrice Defever & Alejandro Riaño, 2017. "China’s Dual Export Sector," Discussion Papers 2017-01, University of Nottingham, GEP.
    15. Jerónimo Carballo & Georg Schaur & Christian Volpe Martincus, 2016. "Posts as Trade Facilitators," IDB Publications (Working Papers) 7681, Inter-American Development Bank.

    More about this item

    Keywords

    ETDZ; innovation policy; regional economics; spillover; STIP; treatment effects;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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