NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

XiaoYan Fan

Department of Economics
Fudan University

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NBER Working Papers and Publications

January 2012The Role of Firm Factors in Demand, Cost, and Export Market Selection for Chinese Footwear Producers
with Mark J. Roberts, Daniel Yi Xu, Shengxing Zhang: w17725
In this paper we use micro data on both trade and production for a sample of large Chinese manufacturing firms in the footwear industry from 2002-2006 to estimate an empirical model of export demand, pricing, and market participation by destination market. We use the model to construct indexes of firm-level demand, cost, and export market profitability. The empirical results indicate substantial firm heterogeneity in both the demand and cost dimensions with demand being more dispersed. The firm-specific demand and cost components are very useful in explaining differences in the extensive margin of trade, the length of time a firm exports to a destination, and the number and mix of destinations, as well as the export prices, while cost is more important in explaining the quantity of firm ex...
 
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