Scale, scope, and trade dynamics of export processing plants
Fernandes, Ana P.
Accepted manuscript: © 2015, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/
Reason for embargo
We use transaction-level data for the universe of Chinese trading firms over 2000–2006 to document that compared to ordinary exporters, export processing firms are larger but less diversified in products and destinations within the same industry; start exporting larger volumes but grow less over time within a market; are more likely to start selling to more distant markets but less likely to penetrate new ones after the first year. Since EP firms face less uncertainty, these facts can be rationalized in light of the heterogeneous-firm model with uncertainty in export sales, such as Fernandes and Tang (2014).
Copyright © 2015 Elsevier. NOTICE: this is the author’s version of a work that was accepted for publication in Economics Letters. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economics Letters (2015), DOI: 10.1016/j.econlet.2015.04.033
NOTE: the working paper version (2012) is in ORE at http://hdl.handle.net/10036/4380
Vol. 133, pp. 68 - 72