Exports,technical progress and productivity growth in a transition economy: a non-parametric approach for China |
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| Authors: | Xiaolan Fu |
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| Institution: | 1. Vlerick Leuven Gent Management School and Department of Accountancy and Corporate Finance , Faculty of Economics and Business Administration , Ghent University , Belgium hubert.ooghe@ugent.ac.be;3. Vlerick Leuven Gent Management School and Department of Accountancy and Corporate Finance , Faculty of Economics and Business Administration , Ghent University , Belgium |
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| Abstract: | Theories suggesting either static or dynamic productivity gains derived from exports often assume the prior existence of a competitive market. In the presence of market imperfection and distortion, however, the competition and resource reallocation effects of exports on productive efficiency may be greatly reduced; and there may actually be disincentives for innovation. This paper analyses the impact of exports on aggregate productivity growth in a transition economy using a panel of Chinese manufacturing industries over the period 1990–1997. TFP growth is estimated by employing a non-parametric approach and is decomposed into technical progress and efficiency change. No evidence has been found suggesting significant productivity gains at the industry level resulting from exports. Findings of the current study suggest that, for exports to generate significant positive effect on TFP growth, a well-developed domestic market and a neutral, outward-oriented policy are necessary. |
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| Keywords: | environmental regulation green policies abnormal returns systematic risk Obama effect |
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