Made and created in China: the role of processing trade
Zhiyuan Chen,
Aksel Erbahar,
Yuan Zi
Abstract:This paper examines the main participants of China's processing trade regime – firms that engage in both processing and ordinary exports. By matching several datasets from China, including a unique sample of transaction‐level customs data with firms' branding information, we uncover three stylized facts. First, these “mixed” firms exhibit superior performance in various margins such as revenue and physical productivity. Second, even within firms, there is a link between export mode choice and brand ownership –… Show more
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