Exporting from China: The Determinants of Trade Status

54 Pages Posted: 28 Dec 2020 Last revised: 18 Oct 2021

See all articles by Russell Cooper

Russell Cooper

Pennsylvania State University, College of the Liberal Arts - Department of Economic

Guan Gong

Shanghai University of Finance and Economics

Guanliang Hu

Pennsylvania State University

Ping Yan

Peking University

Date Written: December 2020

Abstract

This paper studies the exporting decision of Chinese manufacturing firms. The economic framework stresses the dynamic decision by both state controlled and private entities to export in a model with labor adjustment costs. In this complex environment, a simple decision rule whereby export status depends only on current productivity does not hold. Nor does this rule match data patterns. The estimated model is used to understand the factors that influence export status. The analysis highlights the economic significance of labor adjustment costs in shaping both employment and trade dynamics.

Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Suggested Citation

Cooper, Russell and Gong, Guan and Hu, Guanliang and Yan, Ping, Exporting from China: The Determinants of Trade Status (December 2020). NBER Working Paper No. w28289, Available at SSRN: https://ssrn.com/abstract=3756321

Russell Cooper (Contact Author)

Pennsylvania State University, College of the Liberal Arts - Department of Economic ( email )

524 Kern Graduate Building
University Park, PA 16802-3306
United States

Guan Gong

Shanghai University of Finance and Economics ( email )

777 Guoding Road
Shanghai, AK Shanghai 200433
China

Guanliang Hu

Pennsylvania State University

Ping Yan

Peking University ( email )

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

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
4
Abstract Views
100
PlumX Metrics