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Firm performance and trade with low-income countries : Evidence from China

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  • Schmerer, Hans-Jörg

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Wang, Luhang

    (Xiamen University)

Abstract

"Do firms in developing countries shift trade towards developed economies as a result of high economic growth? The matched customs-manufacturing firm data used in this study confront this hypothesized link with empirical evidence. Our analysis reveals a rising low-income country trade share around and after China's accession to the World Trade Organization. Based on this stylized fact, we analyze the link between firm characteristics and trade with low-income countries. We find evidence for sequential sorting into different export-modes according to firm-productivity: i) only the most productive firms export to low-income countries, ii) exporting to low-income countries is mostly coupled to exporting to high-income countries, and iii) firms that switch to export to markets with higher potential are younger than firms that switch to export to both high- and low-income markets. Moreover, we find that firms tend to start exporting through specialization on high-income markets before diversifying to both type of markets." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Schmerer, Hans-Jörg & Wang, Luhang, 2014. "Firm performance and trade with low-income countries : Evidence from China," IAB-Discussion Paper 201419, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:201419
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    References listed on IDEAS

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    Cited by:

    1. Stephan, Gesine & Uthmann, Sven, 2014. "Akzeptanz von Vergeltungsmaßnahmen am Arbeitsplatz : Befunde aus einer quasi-experimentellen Untersuchung," IAB-Discussion Paper 201427, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    Keywords

    China ; Außenhandelsverflechtung ; Entwicklungsländer ; Export ; Industrieländer;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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