Exporting and Firm Performance: Chinese Exporters and the Asian Financial Crisis

Albert Park; Dean Yang; Xinzheng Shi; Yuan Jiang

doi:10.1162/rest_a_00033

Exporting and Firm Performance: Chinese Exporters and the Asian Financial Crisis

Albert Park¹; Dean Yang²; Xinzheng Shi³; Yuan Jiang⁴

¹ University of Oxford · ² National Bureau of Economic Research · ³ Tsinghua University · ⁴ National Bureau of Statistics of China

The Review of Economics and Statistics 2010

We ask how export demand shocks associated with the Asian financial crisis affected Chinese exporters. We construct firm-specific exchange rate shocks based on the precrisis destinations of firms' exports. Because the shocks were unanticipated and large, they are a plausible instrument for identifying the impact of exporting on firm productivity and other outcomes. We find that firms whose export destinations experience greater currency depreciation have slower export growth and that export growth leads to increases in firm productivity and other firm performance measures. Consistent with “learning-by-exporting,” the productivity impact of export growth is greater when firms export to more developed countries.

DOI: 10.1162/rest_a_00033
Volume: 92 (4)
Pages: 822-842
Language: en
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