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Abstract:

cover
CEP discussion paper
Managing trade: evidence from China and the US
Nicholas Bloom, Kalina Manova, Stephen Teng Sun, John Van Reenen and Zhihong Yu
June 2018
Paper No' CEPDP1553:
Full Paper (pdf)

JEL Classification: F10; F14; F23; L20; O19; O32


Tags: management; exports; product quality; productivity; globalisation

We study how management practices shape export performance using matched production-trade-management data for Chinese and American firms and a randomized control trial in India. Better managed firms are more likely to export, sell more products to more destinations, and earn higher export revenues and profits. They export higher-quality products at higher prices and lower quality-adjusted prices. They import a wider range of inputs and inputs of higher quality and price, from more advanced countries. We rationalize these patterns with a heterogeneous-firm model in which effective management improves performance by raising production efficiency and quality capacity.