The Interactions Between Export And Productivity Of China's Enterprises

In 2007, China's exports ranked the second in the world exports market, China is a truly trading country, but the same year, exports of processing trade and foreign-oriented exports were accounted for 50.7 percent and 57.1 percent in total exports. Is China a trade power country?In this paper, according to analysis 38399 industrial enterprises which persisted in 1999 to 2007, the relationship between exports and their productivity, to explore whether the level of productivity determinants of export, through export enterprises have to improve their pro-ductivity.First, the review of trade theory of heterogeneous enterprise development process, as well as related empirical test, laid the foundation for the following studies. Second, in the theoreti-cal part, through analysis the heterogeneous knowledge of trade theory, the difference from the enterprise level productivity of the export mechanism for firm productivity, economies of scale will be added to the Melitz (2003) model, to make the model more in line with China's reality. Finally, using a variety of methods (LP methods, labor productivity, etc.) calculate the productivity of enterprises, the use of panel data methods and OLS methods of empirical analysis of export and the relationship between their own productivity. The empirical results show that export premium exists in China's companies at the same year. The productivity of exporters prior to non-exporters before they went into the international market. But by exporting, the enterprise's improvement of its productivity is little when compared with other countries. It means, in China self-selection effects exists, and learning-by-exporting effects exists. The nature and size of the enterprise is also the important elements which determine it chose export or not.Finally, this paper gives some policy recommendations according to the empirical results.