Using Export Market Performance to Evaluate Regional Preferential Policies in China

Katholieke Universiteit Department of Economics Discussion Paper No. 11-33

29 Pages Posted: 13 Jan 2012

See all articles by Annette Schminke

Annette Schminke

KU Leuven

Johannes Van Biesebroeck

K.U.Leuven; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: December 1, 2011

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.

Keywords: Spillovers, international trade, upgrading

JEL Classification: F14, R11, L2

Suggested Citation

Schminke, Annette and Van Biesebroeck, Johannes, Using Export Market Performance to Evaluate Regional Preferential Policies in China (December 1, 2011). Katholieke Universiteit Department of Economics Discussion Paper No. 11-33. Available at SSRN: https://ssrn.com/abstract=1983950 or http://dx.doi.org/10.2139/ssrn.1983950

Annette Schminke (Contact Author)

KU Leuven ( email )

Naamsestraat 69
Leuven, B-3000
Belgium
+3216373708 (Phone)

HOME PAGE: http://www.econ.kuleuven.be/annette.schminke

Johannes Van Biesebroeck

K.U.Leuven ( email )

Naamsestraat 69
B-3000 Leuven
Belgium
+3216326793 (Phone)
+3216326796 (Fax)

HOME PAGE: http://www.econ.kuleuven.be/public/N07057/

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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