Institutional Affiliation: Nottingham University
|Growing Like China: Firm Performance and Global Production Line Position|
with Davin Chor, Kalina Manova
in NBER International Seminar on Macroeconomics 2020, Jeffrey A. Frankel and Hélène Rey, organizers
|Managing Trade: Evidence from China and the US|
with Nicholas Bloom, Kalina Manova, John Van Reenen, Stephen Teng Sun: w24718
We present a heterogeneous-firm model in which management ability increases both production efficiency and product quality. Combining six micro-datasets on management practices, production and trade in Chinese and American firms, we find broad support for the model's predictions. First, better managed firms are more likely to export, sell more products to more destination countries, and earn higher export revenues and profits. Second, better managed exporters have higher prices, higher quality, and lower quality-adjusted prices. Finally, they also use a wider range of inputs, higher quality and more expensive inputs, and imported inputs from more advanced countries. The structural estimates indicate that management is important for improving production efficiency and product quality in bot...
|How Firms Export: Processing vs. Ordinary Trade with Financial Frictions|
with Kalina Manova: w18561
The fragmentation of production across borders allows firms to make and export final goods, or to perform only intermediate stages of production by processing imported inputs for re-exporting. We examine how financial frictions affect companies’ choice between processing and ordinary trade – implicitly a choice of production technology and position in global supply chains – and how this decision affects performance. We exploit matched customs and balance-sheet data from China, where exports are classified as ordinary trade, import-and-assembly processing trade (processing firm sources and pays for imported inputs), and pure-assembly processing trade (processing firm receives foreign inputs for free). Value added, profits and profitability rise from pure assembly to processing with imports ...
Published: Manova, Kalina & Yu, Zhihong, 2016. "How firms export: Processing vs. ordinary trade with financial frictions," Journal of International Economics, Elsevier, vol. 100(C), pages 120-137. citation courtesy of