Research On The Relationship Between Export Price,Export Quality And Productivity Based On General Trade

Export price is one of the most important index to measure competitiveness and reflect the trade benefit obtained by a country in international trade.As a result,considering the influential factors and their mechanism of export price has significant meaning in promoting the sustainable development and international competitiveness to a country's export What's more,Our export structure has reached to a level close to that of an average developed country,export sophistication has been constantly improved.Despite all of that,low price with poor quality has been the unshakable label for Chinese export products.In order to improve the current state of Chinese export trade,the eighteenth party congress made a strategic decision to adjust the foothold of economic development to quality and benefit improvement,to strengthen the new and sustainable economic dynamic driven by innovation,which requires exporting corporation to undertake technology innovation and service refinement thus improve total factor productivity.On the base of dual heterogeneity in productivity and quality,this article considers micro corporations as research subject and analyzes the pricing behavior from the demand and supply,trying to prove that the relationship between the productivity and export price depends on productivity effects and quality effects.In the empirical part,we merge the following two highly dis-aggregated large panel Chinese data sets,the first is firm-level production data,and the second is the firm-product level trade data.The data source of the firm-level production data is the annual surveys of Chinese manufacturing firms,which is conducted by the National Bureau of Statistics of China.The second database we use is the Chinese trade data at HS8 digit level by each firm,provided by China's General Administration of Customs.The sample period is between 2001 and 2007.To capture firms,productivity,we estimate total factor productivity.As the traditional OLS estimation method suffers from simultaneity bias and selection bias,we employ the augmented Olley and Pakes(1996)approach to deal with both the simultaneity bias and selection bias in the measured TFP in the main part of our empirical test Quality can only be inferred indirectly from observed prices and demands.Following Li Kunwang(2013),we estimate export quality and quality-free export price via residual error.At last,we build our empirical model on the base of Kruger&Verhoogen(2012)to justify our theoretical predictions using fixed effect regression.The whole article is divided into seven parts.The first part is introduction,which elaborates on the research background,theoretical significance and reality meaning,the latest study results relating the export price,quality and productivity are sorted out in this part.In addition,it also corporate the whole study methods and thoughts.The innovation and shortcoming of this article are introduced at the end of this part.The second part represents the theoretical model used and brings forth an endogenous quality heterogeneity corporation model.In third part,we specify the current situation of our export trade.The fourth part specifies our empirical model and describes the data and measurements that are used to estimate them.The fifth part are designed to justify the hypotheses proposed in second part,which including productivity effect,quality effect and the relationship between productivity and export price under the quality heterogeneity products and quality homogeneity products.On the base of the fifth part,the sixth part are going to specify the further empirical analysis on the quality heterogeneity with different quality differences.Robustness test is undertaken from different perspective in the sixth part.At last,the seventh part conclude the whole article,and put forward the proposals for government and corporation.The main innovations of this paper are as follows:Firstly,we analyze the relationship between the export price,export quality and productivity in both theoretical and empirical perspective.Also,we combine the theoretical results with the theory raised by Johnson,which distinguish the heterogeneous products with homogeneous products.Secondly,instead of export unit value,the measurement in export quality raised by Li Kunwang is used in this article.There are still some shortcoming despite all the innovation based on the existing studies.Because of the limited research level,the paper does not involve the analysis on pricing in export companies from industry perspective.Different export trade form has obvious difference in pricing,considering that processing trade involves importing from abroad,the export price is more volatile in comparison with general trade,along with the fact that most of the processing trade is at low-end value chain,which requires less for the productivity,the paper does not involve the analysis on export pricing in processing trade corporation.