Topic:Returns to Scale,Productivity,and Markup:Revisit the Export Premium

Abstract:The productivity effect of exports has been the foundation for many trade-related policies.However empirical studies usually find a mixed effect.We show that increasing returns to scale and markup are two important sources of gains from exports,in addition to the productivity effect.Because output prices are typically unavailable in most micro-datasets,we develop a new method to consistently estimate firm-levelmarkup,productivity,and returns to scale jointly,using the widely available revenue and input expenditure.We find that export has substantial efficiency gains,half of which is contributed by increasing returns to scale and the other half by export's productivity premium.The improved efficiency allows exporters to charge a higher markup but at a lower price.Taken together,the firm's profit increases by about a quarter after export in the Chinese manufacturing industry;consumers also benefit from lowerprices.Increasing returns to scale also provides an explanation for why TEPR may failtocapture the export premium.

Lecturer: Hong song Zhang

Introduction of the Lecturer:

HongsongZhang,PhDin Economics from Pennsylvania StateUniversity,is Associate Professor of Economics at the University of Hong Kong (HKU).He is Deputy Director of the China Economic Research Institute (ICE) at the University of Hong Kong and Deputy Director of the Centre for Economic Strategy at the Shenzhen Institute of Business School at the University of HongKong.His research interests cover topics such as empirical industrial organisation,international trade and applied microeconomics,with a particular focus on how firms' competitiveness in terms of productivity,supplier networks and demand affects their performance in domestic and international markets.His research has been published in leading journals in the field of Economics,such as《the RAND Journal of Economics》,《Economic Journal》《Review of Economics and Statistics》、《International Economic Review》《European Economic Review》and《Journal of Development Economics》.

Time: March 4,202414:00-16:00

Venue: B438,ZhixinBuilding,CentralCampus