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Using Export Market Performance to Evaluate Regional Preferential Policies in China

  • Schminke, Annette
  • Van Biesebroeck, Johannes

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.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8696.

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Date of creation: Dec 2011
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Handle: RePEc:cpr:ceprdp:8696
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  1. Kalina Manova & Zhiwei Zhang, 2012. "Export Prices Across Firms and Destinations," The Quarterly Journal of Economics, Oxford University Press, vol. 127(1), pages 379-436.
  2. Hu, Albert Guangzhou, 2007. "Technology parks and regional economic growth in China," Research Policy, Elsevier, vol. 36(1), pages 76-87, February.
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  7. Chen, Shenjie & Van Biesebroeck, Johannes & Yu, Emily, 2011. "The Impact of Trade Promotion Services on Canadian Exporter Performance," CEPR Discussion Papers 8597, C.E.P.R. Discussion Papers.
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  12. John Sutton, 2007. "Quality, Trade and the Moving Window: The Globalisation Process," Economic Journal, Royal Economic Society, vol. 117(524), pages F469-F498, November.
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  14. Head, Keith & Ries, John, 1996. "Inter-City Competition for Foreign Investment: Static and Dynamic Effects of China's Incentive Areas," Journal of Urban Economics, Elsevier, vol. 40(1), pages 38-60, July.
  15. Zhang, Haiyang & Sonobe, Tetsushi, 2011. "Development of science and technology parks in China, 1988 - 2008," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 5, pages 1-25.
  16. Michael Greenstone & Richard Hornbeck & Enrico Moretti, 2010. "Identifying Agglomeration Spillovers: Evidence from Winners and Losers of Large Plant Openings," Journal of Political Economy, University of Chicago Press, vol. 118(3), pages 536-598, 06.
  17. Hallak, Juan Carlos, 2006. "Product quality and the direction of trade," Journal of International Economics, Elsevier, vol. 68(1), pages 238-265, January.
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