Exporting, importing and the heterogeneity of Chinese manufacturing firms

Zhang, Liyun (2015). Exporting, importing and the heterogeneity of Chinese manufacturing firms. University of Birmingham. Ph.D.

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Abstract

This thesis studies the internationalization strategies of Chinese manufacturing firms. Using rich information from a merged dataset with survey data and trade data of Chinese manufacturing firms over the period 2002 to 2006, we study the firms’ exporting and importing behaviour and their relationships with firm heterogeneity. I first investigate firms’ decision to export taking into account firms’ import activities, unobserved heterogeneity and initial conditions. Sunk entry costs and firms’ importing experience and characteristics including age, size, productivity, labour-force quality, financial health and ownership are found to be significant determinants of firms’ export behaviour. Compared to the extensive studies on firm-level exports, the importing side has been largely neglected. I then examine the casual relationship between importing and firm productivity using propensity score matching with difference-in-differences techniques. More productive firms are found to self-select into the import markets and at the same time participation in the import markets improves the firms’ productivity. Finally, I explore the links between the two sides of firms’ international trade activities. Estimates across different specifications show that access to foreign inputs improves firms’ export performances. Importing more and better quality inputs raises the number of export varieties, export value and export quality.

Type of Work:

Thesis (Doctorates > Ph.D.)

Award Type:

Doctorates > Ph.D.

Supervisor(s):