Abstract

http://ssrn.com/abstract=1495664
 
 

References (36)



 
 

Citations (6)



 


 



Exporting Behavior of Foreign Affiliates: Theory and Evidence


Jiangyong LU


Center for China in the World Economy

Yi Lu


School of Business, University of Hong Kong

Zhigang Tao


University of Hong Kong - School of Business

August 2009


Abstract:     
Firms have increasingly conducted different stages of production in different countries. In particular, they set up operations in low-cost countries (those operations are referred to as foreign affiliates in those countries) as platforms for export. What is the exporting behavior of foreign affiliates? In this paper, using data from China, we find that among foreign affiliates exporters are less productive than non-exporters (export discount). We then offer a theoretical explanation by incorporating the possibility that firms could have different stages of production in different countries into the standard firm heterogeneity model.

Number of Pages in PDF File: 29

Keywords: Foreign Affiliates, Exporting Behavior, Export Discount, Firm Heterogeneity

JEL Classification: F12, F23, L22, D24, L6

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Date posted: October 30, 2009  

Suggested Citation

LU, Jiangyong and Lu, Yi and Tao, Zhigang, Exporting Behavior of Foreign Affiliates: Theory and Evidence (August 2009). Available at SSRN: http://ssrn.com/abstract=1495664 or http://dx.doi.org/10.2139/ssrn.1495664

Contact Information

Jiangyong LU
Center for China in the World Economy ( email )
South 101, Shunde Building
School of Economics and Management, Tsinghua
Beijing 100084
China
HOME PAGE: http://www.ccwe.org.cn
Yi Lu (Contact Author)
School of Business, University of Hong Kong ( email )
Rm 730, Meng Wah Complex
Pokfulam Road
Hong Kong
Hong Kong
(852) 2241-5245 (Phone)
(852) 2858-5614 (Fax)
HOME PAGE: http://www.fbe.hku.hk/~luyi
Zhigang Tao
University of Hong Kong - School of Business ( email )
Meng Wah Complex
Pokfulam Road
Hong Kong
China
(852) 2857-8223 (Phone)
(852) 2858-5614 (Fax)
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