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ID: 102774

New global auto industry? / Kierzkowski, Henryk

Kierzkowski, Henryk	Journal Article
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2011.

Summary/Abstract

This paper brings together a number of robust trade models to shed some light on the likely evolution of the global automotive industry. Vertical product differentiation, intra-industry trade and fragmentation of production leading to international outsourcing are important features of the existing global automotive sector. The global automotive sector will most likely experience groundbreaking changes over the coming decades. The sector is confronted with a multidimensional technological revolution spurred by radical product innovation, shifts in customer demand and government incentives. A dominant driver will be growing public concern about climate change. China and India might well become leading players by 2050, if not earlier.

Key Words

China ; New Technology ; Automotive industry ; Outsourcing ; Trade Flows ; Product Differentiation

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ID: 149772

Product differentiation, export participation and productivity growth: evidence from Chinese manufacturing firms / Hu, Cui ; Tan, Yong

Tan, Yong	Journal Article
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Summary/Abstract

In this paper, we investigate how the degree of export participation and product differentiation affect firms' productivity growth through learning-by-exporting. We extend the model of Melitz and Ottaviano (2008) to endogenize the effort firms allocate to learning. This effort choice depends on both the degree to which firms enter export markets and the extent to which products are differentiated across producers. Using a firm-level dataset from China's manufacturing industries, we implement propensity score matching methods to test the model's predictions. Our results indicate that the degree of export participation is positively correlated with TFP improvements. Simultaneously, we empirically verify that firms exporting less differentiated products experience faster TFP growth than those exporting more differentiated products.

Key Words

Product Differentiation ; TFP ; Export Participation ; Learning-by-Exporting

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