We study how management practices shape export performance using matched production-trade-management data for Chinese and American firms and a randomized control trial in India. Better managed firms are more likely to export, sell more products to more destinations, and earn higher export revenues and profits. They export higher-quality products at higher prices and lower quality-adjusted prices. They import a wider range of inputs and inputs of higher quality and price, from more advanced countries. We rationalize these patterns with a heterogeneous-firm model in which effective management improves performance by raising production efficiency and quality capacity.

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20 June 2018     Paper Number CEPDP1553

Download PDF - Managing trade: evidence from China and the US

This CEP discussion paper is published under the centre's Growth programme.

This publication comes under the following theme: Management practices and productivity