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Productivity Gains from Trade: Bunching Estimates from Trading Rights in China

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Title: Productivity Gains from Trade: Bunching Estimates from Trading Rights in China
Authors: Yunong Li, Yi Lu, Jianguo Wang
Source: Review of Economics and Statistics. 107:1275-1290
Publisher Information: MIT Press, 2025.
Publication Year: 2025
Subject Terms: 8. Economic growth, 0502 economics and business, 05 social sciences
Description: This paper identifies productivity gains from trade by studying the manipulation behavior of firms in response to regulatory policies on international trade in China. Bunching estimates show that participation in international trade increases firm productivity. The productivity gains increase over time, indicating dynamic learning from trading. Further exploration shows no effects on R&D investment, product rationalization, and markup. Young firms and nonstate-owned firms (non-SOEs) gain more from participating in trade. Workers share productivity gains through increased wages but not from increased employment.
Document Type: Article
Language: English
ISSN: 1530-9142
0034-6535
DOI: 10.1162/rest_a_01392
Accession Number: edsair.doi...........4e789a8905c1de1b99eb8236e69e8c88
Database: OpenAIRE
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  Data: Productivity Gains from Trade: Bunching Estimates from Trading Rights in China
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  Data: <searchLink fieldCode="AR" term="%22Yunong+Li%22">Yunong Li</searchLink><br /><searchLink fieldCode="AR" term="%22Yi+Lu%22">Yi Lu</searchLink><br /><searchLink fieldCode="AR" term="%22Jianguo+Wang%22">Jianguo Wang</searchLink>
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  Data: <i>Review of Economics and Statistics</i>. 107:1275-1290
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  Data: MIT Press, 2025.
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  Data: This paper identifies productivity gains from trade by studying the manipulation behavior of firms in response to regulatory policies on international trade in China. Bunching estimates show that participation in international trade increases firm productivity. The productivity gains increase over time, indicating dynamic learning from trading. Further exploration shows no effects on R&D investment, product rationalization, and markup. Young firms and nonstate-owned firms (non-SOEs) gain more from participating in trade. Workers share productivity gains through increased wages but not from increased employment.
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        Value: 10.1162/rest_a_01392
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              Y: 2025
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