Exporting and Firm Performance: Chinese Exporters and the Asian Financial Crisis

Albert Park, Dean Yang, Xinzheng Shi, Yuan Jiang

NBER Working Paper No. 14632
Issued in January 2009
NBER Program(s):International Trade and Investment

We ask how export demand shocks associated with the Asian financial crisis affected Chinese exporters. We construct firm-specific exchange rate shocks based on the pre-crisis destinations of firms' exports. Because the shocks were unanticipated and large, they are a plausible instrument for identifying the impact of exporting on firm productivity and other outcomes. We find that firms whose export destinations experience greater currency depreciation have slower export growth, and that export growth leads to increases firm productivity and other firm performance measures. Consistent with "earning-by-exporting", the productivity impact of export growth is greater when firms export to more developed countries.

Acknowledgments

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Document Object Identifier (DOI): 10.3386/w14632

Published: Albert Park & Dean Yang & Xinzheng Shi & Yuan Jiang, 2010. "Exporting and Firm Performance: Chinese Exporters and the Asian Financial Crisis," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 822-842, November. citation courtesy of

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