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Zhihong Yu
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Publisher: Journals Gateway
The Review of Economics and Statistics (2021) 103 (3): 443–460.
Published: 08 July 2021
Abstract
View articletitled, Trade and Management
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for article titled, Trade and Management
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.
Includes: Supplementary data