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Abstract:![]()
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 ![]() 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. |
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