Department of Economics and Business Economics

Processing Trade, Productivity and Prices: Evidence from a Chinese Production Survey

Research output: ResearchWorking paper

Standard

Processing Trade, Productivity and Prices: Evidence from a Chinese Production Survey. / Li, Yao Amber; Smeets, Valerie; Warzynski, Frederic.

Aarhus : Institut for Økonomi, Aarhus Universitet, 2017.

Research output: ResearchWorking paper

Harvard

APA

Li, Y. A., Smeets, V., & Warzynski, F. (2017). Processing Trade, Productivity and Prices: Evidence from a Chinese Production Survey. Aarhus: Institut for Økonomi, Aarhus Universitet. Economics Working Papers, No. 2017-12

CBE

MLA

Li, Yao Amber, Valerie Smeets, and Frederic Warzynski Processing Trade, Productivity and Prices: Evidence from a Chinese Production Survey. Aarhus: Institut for Økonomi, Aarhus Universitet. (Economics Working Papers; Journal number 2017-12). 2017., 21 p.

Vancouver

Li YA, Smeets V, Warzynski F. Processing Trade, Productivity and Prices: Evidence from a Chinese Production Survey. Aarhus: Institut for Økonomi, Aarhus Universitet. 2017 Nov 23.

Author

Li, Yao Amber ; Smeets, Valerie ; Warzynski, Frederic. / Processing Trade, Productivity and Prices: Evidence from a Chinese Production Survey. Aarhus : Institut for Økonomi, Aarhus Universitet, 2017. (Economics Working Papers; No. 2017-12).

Bibtex

@techreport{3b76016570eb4707b3140c031a3be6b1,
title = "Processing Trade, Productivity and Prices: Evidence from a Chinese Production Survey",
abstract = "In this paper, we use a detailed production survey in the Chinese manufacturing industry to estimate both revenue and physical productivity and relate our measurements to firms' trade activity. We find that Chinese exporters for largely export oriented products like leather shoes or shirts appear to be less efficient than firms only involved on the domestic market based on the standard revenue productivity measure. However, we show strong positive export premium when we instead consider physical productivity. The simple and intuitive explanation of our results is that exporters charge on average lower prices. We focus more particularly on the role of processing trade and find that price differences are especially (and probably not surprisingly) large for firms involved in this type of contractual arrangements.",
keywords = "Productivity, prices, processing trade, China",
author = "Li, {Yao Amber} and Valerie Smeets and Frederic Warzynski",
year = "2017",
month = "11",
publisher = "Institut for Økonomi, Aarhus Universitet",
type = "WorkingPaper",
institution = "Institut for Økonomi, Aarhus Universitet",

}

RIS

TY - UNPB

T1 - Processing Trade, Productivity and Prices: Evidence from a Chinese Production Survey

AU - Li,Yao Amber

AU - Smeets,Valerie

AU - Warzynski,Frederic

PY - 2017/11/23

Y1 - 2017/11/23

N2 - In this paper, we use a detailed production survey in the Chinese manufacturing industry to estimate both revenue and physical productivity and relate our measurements to firms' trade activity. We find that Chinese exporters for largely export oriented products like leather shoes or shirts appear to be less efficient than firms only involved on the domestic market based on the standard revenue productivity measure. However, we show strong positive export premium when we instead consider physical productivity. The simple and intuitive explanation of our results is that exporters charge on average lower prices. We focus more particularly on the role of processing trade and find that price differences are especially (and probably not surprisingly) large for firms involved in this type of contractual arrangements.

AB - In this paper, we use a detailed production survey in the Chinese manufacturing industry to estimate both revenue and physical productivity and relate our measurements to firms' trade activity. We find that Chinese exporters for largely export oriented products like leather shoes or shirts appear to be less efficient than firms only involved on the domestic market based on the standard revenue productivity measure. However, we show strong positive export premium when we instead consider physical productivity. The simple and intuitive explanation of our results is that exporters charge on average lower prices. We focus more particularly on the role of processing trade and find that price differences are especially (and probably not surprisingly) large for firms involved in this type of contractual arrangements.

KW - Productivity, prices, processing trade, China

M3 - Working paper

BT - Processing Trade, Productivity and Prices: Evidence from a Chinese Production Survey

PB - Institut for Økonomi, Aarhus Universitet

ER -