Export Productivity From Heterogeneity Perspective: Firms’ Motivation And Industry Performance

The research on mutual relationship between firm productivity and export is a basic viewpoint of New-new trade theory. The existing research traces the following two approaches:first is productivity decides firm’s export decision behavior; second is export influences productivity. The existing research especially empricial studies have confirmed the following corollary:productivity decides export, and higher productivity prompts export. For the latter approach, research results seem obscure. Export and productivity issue is also an important topic of economic growth theory which focuses on the industry productivity effects by exporting. The general idea of this article is explaining mechanism based on foreign models and Chinese realities, then testing the micro-motivation based on firm level data in China. At the same time, we try to combine firm-level and industry-level together. And the combination of the two levels itself belongs to a new exploration. The policy implications are also expectable.Theoretically, this paper demonstrates the mechanism between productivity and export, then gives some Chinese extensions based on foreign literatures. Firstly, we extent the heterogeneity characteristics in the export decision model which providing a basic model for the following emprical studies. Secondly, we try to combine the firm-level export and industry-level productivity for the purpose of explaining "learning by exporting" effects, then giving the conjecture of "fallacy of composition" together with initial analysis. Based on these, we raise a new framework which suitable for China and give some empirical studies.Empirically, we give empirical analysis for the theory hypothesis based on Chinese firm-level data, this includes different perspectives for the same topic and some trial studies. They are as follows:First, this paper provides a synthetic empirical study for "self-selection" hypothesis using both labour productivity and TFP based on fall sample data. Second, we find some "self-selection paradox" characteristics form the ownership perspective, describe it using inverted U shape and give some reasonable explainations. Third, this paper provides a comparative study based on Zhejiang province and Guangdong province for the first time and some political impilcations. Forth, this paper gives a trial empirical analysis for the conjecture of "fallacy of composition", and gives part of explainations using the former confirmed paradox characteristics.The conclusions are as follows:First, firm’s labour productivity has negative effects on its export propensity which is contrary to the "self-selection" hypothesis and may be caused by our trade pattern of processing trade; TFP has positive effects on its export propensity which is consistent with the "self-selection" hypothesis and may be ascribe to exporting firms’better soft environment. Second, firm’s TFP has different effects on export propensity for different ownerships. It indicates that the "self-selection" hypothesis only has limited applicability in China. Third, firms in Zhejiang province show both positive and negative effects for their private nature, while firms in Guangdong province show negative effects for their processing trade pattern. Forth, as for the conjecture of "fallacy of composition", the results show that, broadly, more than 70% industries have the phenomenon of "fallacy of composition" while less than 30% industries have productivity gains from exporting.Based on the above analysis, this paper also provides us with some usefull political implications which are very significant for realities. No matter solving the urgent problem of firms’upgrading or improving the institutions which block its efficiency or gains from trade, we need to bridge between the micro-level and macro-level, which could make Chinese firms’export participation become rational and gains from trade become reasonable.