Firm heterogeneity and export margins evidence from firm-Transaction matched data

This paper investigates what kinds of exporters perform better in extensive (varieties of product) and intensive (exports per product) margins. Using comprehensive within-firm-product panel data of China's electronics industry, we find that firm productivity matters in terms of both the extensive and intensive margins of exports, which potentially provides evidence to support emerging heterogeneous-firm trade theories. Moreover, we note that exporters' financing ability is influential in the two aspects of performance. To deal with problems of sample selection, measures of products, and endogenous causality, we adopt various datasets and variable measurements to implement robustness checks and obtain consistent main findings. Our results can provide trade policy implications for other Asian emerging economies, such as Malaysia and Thailand.