Pure Exporter: Theory and Evidence from China

18 Pages Posted: 23 Sep 2014

See all articles by Jiangyong Lu

Jiangyong Lu

Peking University

Yi Lu

National University of Singapore (NUS)

Zhigang Tao

The University of Hong Kong - School of Business

Date Written: September 2014

Abstract

This article provides the first evidence about pure exporters (i.e. firms exporting all of their output to the foreign market) – a phenomenon overlooked and cannot be explained in the existing literature. It then offers a theoretical analysis of the existence and behaviour of pure exporters. In particular, pure exporters arise when the export market is sufficiently large – a situation more likely to hold in developing countries as opposed to large developed countries, and their productivity levels are above those of nonexporters, but below those of firms having both domestic sales and export. These theoretical predictions are borne out in a data of Chinese manufacturing firms for the period of 1998–2005.

Suggested Citation

Lu, Jiangyong and Lu, Yi and Tao, Zhigang, Pure Exporter: Theory and Evidence from China (September 2014). The World Economy, Vol. 37, Issue 9, pp. 1219-1236, 2014. Available at SSRN: https://ssrn.com/abstract=2499947 or http://dx.doi.org/10.1111/twec.12108

Jiangyong Lu

Peking University ( email )

No. 38 Xueyuan Road
Haidian District
Beijing, Beijing 100871
China

Yi Lu

National University of Singapore (NUS) ( email )

Bukit Timah Road 469 G
Singapore, 117591
Singapore

Zhigang Tao

The 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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