PRICE, PRODUCT QUALITY, AND EXPORTER DYNAMICS: EVIDENCE FROM CHINA

• 成果类型: Article
• 署名作者: Rodrigue, Joel; Tan, Yong
• 署名单位: Vanderbilt University; Nanjing University of Finance & Economics
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12410
• 发表日期: 2019
• 页码: 1911-1955
• 关键词: trade liberalization; firm dynamics; INTERNATIONAL-TRADE; multiproduct firms; MARKET; Heterogeneity; selection; EVOLUTION; GROWTH; plants

摘要

This article develops a model of heterogeneous firms that endogenously choose prices and product quality to build demand in export markets. New exporters optimally charge relatively low prices and produce low-quality goods upon entry. Product quality, prices, and sales increase as demand grows. We structurally estimate model parameters using Chinese customs data. The estimated incentive to build future demand reduces average export prices by 0.7% and increases export sales by 4% upon entry. Endogenous demand accumulation causes estimated export prices, product quality, and sales to grow by 2.2%, 12%, and 79%, respectively, over the following five years.