Working Paper: NBER ID: w28289
Authors: Russell Cooper; Guan Gong; Guanliang Hu; Ping Yan
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.
Keywords: No keywords provided
JEL Codes: E24; F14; F16
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Labor adjustment costs (J39) | Export status (Y10) |
| Removing labor adjustment costs (J39) | Productivity distributions between exporters and non-exporters (D39) |
| Demand shocks (E39) | Export status (Y10) |
| Labor adjustment costs (J39) | Sorting of firms into export status (F14) |