Productivity, agglomeration, and exporting directly: evidence from the Chinese textile industry

Author(s)

Cassey, Andrew / Wang, Qianqian

Abstract

This paper estimates the effect of total factor productivity (TFP) and agglomeration on the choice of a firm to export directly or indirectly through an intermediary. Using Chinese firm-level textile industry data, we apply a spatial autoregressive probit model. We find agglomeration is several times more important than productivity for a firm choosing to export directly. The marginal effect of agglomeration, however, is decreasing as the number of neighbors increases beyond 10.

Keywords

Total factor productivity, agllomeration, export directly, intermediary, spatial autoregressive probit


GET FULL ARTICLE

Cassey, A. / Wang, Q.: Productivity, agglomeration, and exporting directly: evidence from the Chinese textile industry, in: Journal of International Trade and Economic Development, Vol. 31 (8), pp. 1149-1172, 2022

 


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