Abstract：Using the database of China’s industrial enterprises and customs data of China from 2000 to 2005, this paper analyzes self-select effect and productivity-enhancing effect of manufacturing enterprises in China in the process of switching trade status(non-exporter—exporter, non-importer—importer, non-trade—exporter-only, non-trade—importer-only, importer-only—two-way trader and export-only—two-way trader). TFP is calculated by using a modified version of the Olley and Pakes(1996) estimator, taking account of a four-category trade status. The research finds that, for import, none of the two effects exists in the process of importer-only—two-way trader and only self-select effect exists in the process of non-importer—importer; for export, productivity-enhancing effect only exists in the process of export-only—two-way trader and self-select effect only exists in the firms with low export intensity for the process of non-exporter—exporter, non-trade—exporter-only and export-only—two-way trader. The conclusion provides evidence from China which can help us better understand the relationship between trade and productivity.
Keywords: Import, Export, Total Factor Productivity(TFP)
source:Finance & Trade Economics ,No12,2013