TY - JOUR
T1 - Can production subsidies explain China's export performance? Evidence from firm-level data
AU - Girma, Sourafel
AU - Gong, Yundan
AU - Görg, Holger
AU - Yu, Zhihong
N1 - Copyright 2010 Elsevier B.V., All rights reserved.
PY - 2009/12
Y1 - 2009/12
N2 - This paper analyses the relationship between production subsidies and firms’ export performance using a very comprehensive and recent firm-level database and controlling for the endogeneity of subsidies. It documents robust evidence that production subsidies stimulate export activity at the intensive margin, although this effect is conditional on firm characteristics. In particular, the positive relationship between subsidies and the intensive margin of exports is strongest among profit-making firms, firms in capital-intensive industries, and those located in non-coastal regions. Compared to firm characteristics, the extent of heterogeneity across ownership structure (SOEs, collectives, and privately owned firms) proves to be relatively less important.
AB - This paper analyses the relationship between production subsidies and firms’ export performance using a very comprehensive and recent firm-level database and controlling for the endogeneity of subsidies. It documents robust evidence that production subsidies stimulate export activity at the intensive margin, although this effect is conditional on firm characteristics. In particular, the positive relationship between subsidies and the intensive margin of exports is strongest among profit-making firms, firms in capital-intensive industries, and those located in non-coastal regions. Compared to firm characteristics, the extent of heterogeneity across ownership structure (SOEs, collectives, and privately owned firms) proves to be relatively less important.
KW - exporting
KW - subsidies
KW - China
KW - endogenous Tobit
UR - http://www.scopus.com/inward/record.url?scp=71849112962&partnerID=8YFLogxK
UR - http://onlinelibrary.wiley.com/doi/10.1111/j.1467-9442.2009.01586.x/abstract
U2 - 10.1111/j.1467-9442.2009.01586.x
DO - 10.1111/j.1467-9442.2009.01586.x
M3 - Article
SN - 1467-9442
VL - 111
SP - 863
EP - 891
JO - Scandinavian Journal of Economics
JF - Scandinavian Journal of Economics
IS - 4
ER -