Premium
Markups of Chinese exporters: Export discount and product choice
Author(s) -
Yang Xuebing
Publication year - 2021
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.13066
Subject(s) - economics , china , markup language , product (mathematics) , work (physics) , international economics , international trade , monetary economics , mathematics , computer science , mechanical engineering , geometry , political science , xml , law , engineering , operating system
Economists find that exporters usually have higher markups than non‐exporters. Our work, however, shows that Chinese exporters have lower markups than non‐exporters in China. The result is economically and statistically significant. We argue that Chinese exporters have lower markups because they tend to produce products that usually have low markups. The finding is consistent with the hypothesis that China has a comparative advantage in low‐markup products.