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- Title
Can Production Subsidies Explain China's Export Performance? Evidence from Firm-level Data.
- Authors
Girma, Sourafel; Gong, Yundan; Görg, Holger; Zhihong Yu
- Abstract
This paper analyses the relationship between production subsidies and firms’ export performance using a very comprehensive and recent firm-level database and controlling for the endogeneity of subsidies. It documents robust evidence that production subsidies stimulate export activity at the intensive margin, although this effect is conditional on firm characteristics. In particular, the positive relationship between subsidies and the intensive margin of exports is strongest among profit-making firms, firms in capital-intensive industries, and those located in non-coastal regions. Compared to firm characteristics, the extent of heterogeneity across ownership structure (SOEs, collectives, and privately owned firms) proves to be relatively less important.
- Subjects
CHINA; SUBSIDIES; PUBLIC spending; BUSINESS enterprises; GOVERNMENT aid
- Publication
Scandinavian Journal of Economics, 2009, Vol 111, Issue 4, p863
- ISSN
0347-0520
- Publication type
Article
- DOI
10.1111/j.1467-9442.2009.01586.x