Trade and Management

Nicholas Bloom; Kalina Manova; John Van Reenen; Stephen Teng Sun; Zhihong Yu

doi:10.1162/rest_a_00925

Trade and Management

Nicholas Bloom¹; Kalina Manova²; John Van Reenen³; Stephen Teng Sun⁴; Zhihong Yu⁵

¹ Stanford University · ² University College London · ³ London School of Economics and MIT · ⁴ City University of Hong Kong · ⁵ University of Nottingham

The Review of Economics and Statistics 2021 open access

We study how management practices shape export performance using matched production-trade-management data for Chinese and American firms and a randomized control trial in India. Better-managed firms are more likely to export, sell more products to more destinations, and earn higher export revenues and profits. They export higher-quality products at higher prices and lower quality-adjusted prices. They import a wider range of inputs and inputs of higher quality and price, from more advanced countries. We rationalize these patterns with a heterogeneous-firm model in which effective management improves performance by raising production efficiency and quality capacity.

DOI: 10.1162/rest_a_00925
Volume: 103 (3)
Pages: 443-460
Language: en
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