Abstracts of publications
"Export survival pattern and its determinants: An emprical study of Chinese manufacturing firms", Asian-Pacific Economic Literature (SSCI), 2014, 28(1): 161-177, (with Y. Wu)
Abstract: While emprical studies of export entry have proliferated, less attention has been devoted to the study of export survival in foreign markets. This paper explores the patterns and determinants of export survival using data on Chinese manufacturing firms for the period 1998-2007. The analytical methods used include non-parametric techniques and the estimation of a discrete-time duration model. Our results show the high probability of exit fo exporters at the stard of the period. We also find tha large, highly productive and more export-oriented firms are more likely to export for a longer period. In addition, foreign ownership is found to be an important determinant of export survival, while state ownership increases the risk of export failure.
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"Export wage premium in China's manufacturing sector: A firm-level analysis", China Economic Review (SSCI), 2013, 26:182-196. (with Y.Wu)
Abstract: This paper investigates whether exporting firms in Chinese manufacturing sector pay higher average wages than non-exporting firms by analyzing a large firm-level dataset derived from the Chinese Enterprise Census in 2004. Through rigorous exercises involving robust regressions, quantile regressions and nonparametric matching methods, we find that the wage premium of exporting activities is not a prevailing phenomenon in China. It is related to the heterogeneous characteristics of the firms such as ownership, export-orientation and locations. Overall, exporters located in coastal regions but Guangdong province are more likely to pay higher average wages than nonexporters, while those producing in Guangdong on average offer a lower pay.
Keywords: Export; Wage premium; Manufacturing; China
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"Foreign entry and profitablity of domestic firms: Evidence from China", Asian Economic Papers (SSCI), 2013 (with Y. Wu)
Abstract: Profitability provides a yardstick for judging the operational efficiency, growth, and survival of a business enterprise. This study investigates the determinants of firm profitability in the Chinese manufacturing sector, with a focus on the impact of foreign entry on the profitability of domestic firms. Our findings show an inverted-U relationship between foreign entry and the profitability of domestic firms. Furthermore, we also find that the effect of foreign entry on domestic firm profitability varies according to the ownership structure of domestic firms and the export intensity of foreign newcomers.
Keywords: Foreign entry; Profitablity; China
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"Does innovation matter for Chinese high-tech exports: A firm-level analysis", Frontiers of Economcis in China, 2012, 7(2): 218-245.(with Y.Wu and Y. Tang)
Abstract: This paper investigates the impact of innovation on export decisions of Chinese high-tech firms during the period of 2005–2007. Using a parametric, instrumental variable approach and a non-parametric matching method, we find that firm-level innovation efforts, measured by R&D spending and new product output, play only a minor role for domestic exporters. Foreign-invested firms dominate the high-tech exports but do not rely on indigenous innovation activities. These results demonstrate that the success of Chinese high-tech exports does not result from heavy R&D expenditure and technological progress. Moreover, different types of innovation measures show different impacts on the likelihood of exporting. The impacts of innovation on exporting vary widely across industries and Chinese regions.
Keywords: Exports; Innovation; High technology; China
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------"Agglomeration and Export Performance of Chinese Manufacturing Firms", Chapter 9 in Regional Development and Economics Growth in China, 2013, World Scientific Publishing (ISBN: 978-981-4439-86-2).
Abstract: This paper examines export spillovers associated with agglomeration of exporting firms, allowing for a curvilinear relationship and separating the effects for different types of exporter clustering. We estimate a dynamic binary choice model using data from a large survey of Chinese manufacturing firms during the period 1998-2007. Our results show that the number of export firms within the same region and same industry has a positive impact on the probability of exporting but with a decreasing rate, that is, an inverted-U shape relationship. Furthermore, we show the relevance of geographic proximity and industrial similarity to the export spillovers. The pool of local exporters only benefits firms in the same sector within the same region. These findings are robust to the export intensity and various specifications addressing the unobserved firm heterogeneity, heteroskedasticity, and sample selection bias.
Keywords: Export spillovers; Agglomeration; China