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研討會總覽

Learning from Processing Trade: Firm Evidence from China

2019/04/23
  • 研討會日期 : 2019-04-23
  • 時間 : 14:30
  • 主講人 : Professor Yaqi Wang (王雅琦)
  • 主持人 : Professor Hsuan-Chih Lin
  • 地點 : Conference Room C103
  • 演講者簡介 : Professor Wang received her Ph.D. in Economics from National School of Development, Peking University in 2015. She is currently an Associate Professor at Central University of Finance and Economics. Her research interests are International Finance, International Trade and Chinese Economy.
  • 演講摘要 : Processing trade as a significant type of international trade has been studied and compared to ordinary trade. It is widely accepted that processing exporters are different from ordinary exporters in terms of their export volumes, product diversity, skill intensity, profitability and productivity. Distinguishing the two types of exporters is crucial to make analysis of firm-level exporting behavior. Using transaction-level panel data from the Chinese customs, we show that these two types of exporting activities are not mutually exclusive on firm-level and exporters learn from processing trade experience over time. Firms that engage in both ordinary and processing trade (i.e. hybrid exporters) are shown to have better performance than ordinary exporters and pure processing exporters, in terms of their size, diversity, survival rates, etc. After controlling for factors that potentially affect firms' export decisions and performance, we find that past processing trade experience facilitates firms' future ordinary trade performance at both extensive and intensive margins. Firms have significantly increased probability to enter a new market (i.e. a product-destination combination) as an ordinary exporter if it has previous processing trade experience in the same market. Conditional on entry, firms with previous processing trade experience also export larger volumes as ordinary exporters than firms without. Moreover, we also show that firms export products with improved quality and charge higher markups after engaging in processing trade.