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ID: 156460

Do bigger and older firms learn more from exporting? — evidence from China / Liu, Bih Jane

Liu, Bih Jane	Journal Article
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Summary/Abstract

The literature has extensively discussed whether firms benefit from exporting (referred to as the learning-by-exporting (LBE) effect), but the empirical evidence is inconclusive. This paper draws on firm experience (age) to explain this question by using Chinese firm-level data for the period 1998–2007 to examine whether younger firms learn more from exporting than older firms. Employing propensity score matching and the difference-in-difference approach, we show significant LBE effects for older firms, especially those engaging in R&D activities, having large-scale production, and under private ownership. However, the yearly or cumulative LBE effects are either insignificant or rather limited for younger firms regardless of their R&D status and firm size.

Key Words

Firm Size ; Learning-by-Exporting ; Firm Experience ; Firm Age ; China Study

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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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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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