Resource title

Can production subsidies explain China's export performance? : Evidence from firm level data

Resource image

image for OpenScout resource :: Can production subsidies explain China's export performance? : Evidence from firm level data

Resource description

It is widely accepted that China has been experiencing an export-led growth approach. However, the question whether government can reshape industry structure through production subsidies to enhance export performance has not been answered. This paper analyses the impact of production subsidies on 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, although this effect is conditional on firm characteristics. In particular, the beneficial impact of subsidies is found to be more pronounced amongst 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.

Resource author

Sourafel Girma, Yundan Gong, Holger Görg, Zhihong Yu

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/24837

Resource license

Adapt according to the presented license agreement and reference the original author.