Processing trade, domestic and foreign firms, and the differential impact of the Great Recession: Evidence from Chinese customs data

Using firm-level transaction records from the proprietary Chinese Customs data we estimate differential impacts of the Great Recession (GR) of 2008-09 on exports of private domestic firms (PDFs) and foreign invested firms (FIFs). We exploit the longitudinal nature of the data spanning almost a decad...

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Main Authors: Roy, Devesh, Tian, Xi
Format: Conference Paper
Language:Inglés
Published: 2019
Subjects:
Online Access:https://hdl.handle.net/10568/145605
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author Roy, Devesh
Tian, Xi
author_browse Roy, Devesh
Tian, Xi
author_facet Roy, Devesh
Tian, Xi
author_sort Roy, Devesh
collection Repository of Agricultural Research Outputs (CGSpace)
description Using firm-level transaction records from the proprietary Chinese Customs data we estimate differential impacts of the Great Recession (GR) of 2008-09 on exports of private domestic firms (PDFs) and foreign invested firms (FIFs). We exploit the longitudinal nature of the data spanning almost a decade (2003-2011), as well as product level details available in the customs data, to establish causal links. We identify processing trade intensity as one possible mechanism of the fall in exports due to the GR, as well as the slow recovery in its aftermath. Prior to the GR, the FIFs not only were more involved with processing trade compared to the PDFs but also accounted for the larger share of China’s exports. Subsequently, the firms with greater processing trade intensity suffered more due to the GR. We argue that processing trade of the FIFs captured the transmission of the negative demand shocks of the GR.
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spelling CGSpace1456052024-10-25T07:53:29Z Processing trade, domestic and foreign firms, and the differential impact of the Great Recession: Evidence from Chinese customs data Roy, Devesh Tian, Xi exports trade china differential pricing foreign enterprises processing economic recession Using firm-level transaction records from the proprietary Chinese Customs data we estimate differential impacts of the Great Recession (GR) of 2008-09 on exports of private domestic firms (PDFs) and foreign invested firms (FIFs). We exploit the longitudinal nature of the data spanning almost a decade (2003-2011), as well as product level details available in the customs data, to establish causal links. We identify processing trade intensity as one possible mechanism of the fall in exports due to the GR, as well as the slow recovery in its aftermath. Prior to the GR, the FIFs not only were more involved with processing trade compared to the PDFs but also accounted for the larger share of China’s exports. Subsequently, the firms with greater processing trade intensity suffered more due to the GR. We argue that processing trade of the FIFs captured the transmission of the negative demand shocks of the GR. 2019-11-21 2024-06-21T09:04:43Z 2024-06-21T09:04:43Z Conference Paper https://hdl.handle.net/10568/145605 en Open Access Roy, Devesh; and Tian, Xi. 2019. Processing trade, domestic and foreign firms, and the differential impact of the Great Recession: Evidence from Chinese customs data. Presented at the ASSA Annual Meeting, in Hilton Atlanta, Atlanta, United States, January 4-6, 2019. https://www.aeaweb.org/conference/2019/preliminary/paper/bFfKSiaF
spellingShingle exports
trade
china
differential pricing
foreign enterprises
processing
economic recession
Roy, Devesh
Tian, Xi
Processing trade, domestic and foreign firms, and the differential impact of the Great Recession: Evidence from Chinese customs data
title Processing trade, domestic and foreign firms, and the differential impact of the Great Recession: Evidence from Chinese customs data
title_full Processing trade, domestic and foreign firms, and the differential impact of the Great Recession: Evidence from Chinese customs data
title_fullStr Processing trade, domestic and foreign firms, and the differential impact of the Great Recession: Evidence from Chinese customs data
title_full_unstemmed Processing trade, domestic and foreign firms, and the differential impact of the Great Recession: Evidence from Chinese customs data
title_short Processing trade, domestic and foreign firms, and the differential impact of the Great Recession: Evidence from Chinese customs data
title_sort processing trade domestic and foreign firms and the differential impact of the great recession evidence from chinese customs data
topic exports
trade
china
differential pricing
foreign enterprises
processing
economic recession
url https://hdl.handle.net/10568/145605
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