The Role of Firm Factors in Demand, Cost, and Export Market Selection for Chinese Footwear Producers

• 成果类型: Article
• 署名作者: Roberts, Mark J.; Xu, Daniel Yi; Fan, Xiaoyan; Zhang, Shengxing
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; National Bureau of Economic Research; Duke University; Fudan University; University of London; London School Economics & Political Science
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdx066
• 发表日期: 2018
• 页码: 2429-2461
• 关键词: INTERNATIONAL-TRADE; PRODUCTIVITY; QUALITY; DYNAMICS; prices; entry; profitability; Heterogeneity; reallocation; colombia

摘要

In this article, we use micro data on both trade and production for a sample of large Chinese manufacturing firms in the footwear industry from 2002 to 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, marginal cost, and fixed cost. The empirical results indicate substantial firm heterogeneity in all three dimension with demand being the most dispersed. The firm-specific demand and marginal cost components account for over 30% of market share variation, 40% of sales variation, and over 50% of price variation among exporters. The fixed cost index is the primary factor explaining differences in the pattern of destination markets across firms. The estimates are used to analyse the supply reallocation following the removal of the quota on Chinese footwear exports to the EU. This led to a rapid restructuring of export supply sources on both the intensive and extensive margins in favour of firms with high demand and low fixed costs indexes, with marginal cost differences not being important.