The Review of Economics and Statistics Vol. 103 No. 3 2021
Trade and Management
Abstract
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
- Issue
- 3
- Pages
- 443-460
- Language
- en
- Sources
- openalex crossref