Trade and management

Bloom, Nicholas; Manova, Kalina; Van Reenen, John; Sun, Stephen Teng; Yu, Zhihong

Abstract

We study how management practices shape export performance using matched production-trade-management data for Chinese and American firms and a randomized control trial in India. Better managed firms are more likely to export, sell more products to more destinations, and earn higher export revenues and profits. They export higher-quality products at higher prices and lower quality-adjusted prices. They import a wider range of inputs and inputs of higher quality and price, from more advanced countries. We rationalize these patterns with a heterogeneous-firm model in which effective management improves performance by raising production efficiency and quality capacity.

Citation

Bloom, N., Manova, K., Van Reenen, J., Sun, S. T., & Yu, Z. (2021). Trade and management. Review of Economics and Statistics, 103(3), 443-460. https://doi.org/10.1162/rest_a_00925

• Journal Article Type: Article
• Acceptance Date: Dec 19, 2019
• Online Publication Date: May 6, 2020
• Publication Date: Jul 12, 2021
• Deposit Date: Dec 14, 2020
• Publicly Available Date: Dec 14, 2020
• Journal: Review of Economics and Statistics
• Print ISSN: 0034-6535
• Electronic ISSN: 1530-9142
• Publisher: Massachusetts Institute of Technology Press
• Peer Reviewed: Peer Reviewed
• Volume: 103
• Issue: 3
• Pages: 443-460
• DOI: https://doi.org/10.1162/rest_a_00925
• Keywords: Economics and Econometrics; Social Sciences (miscellaneous)
• Public URL: https://nottingham-repository.worktribe.com/output/5145949
• Publisher URL: https://www.mitpressjournals.org/doi/abs/10.1162/rest_a_00925
• Related Public URLs: http://www.mitpressjournals.org/loi/rest
• Additional Information: Bloom, N., Manova, K., Van Reenen, J., Sun, S. T., & Yu, Z. (2020). Trade and Management. The Review of Economics and Statistics, 1–44. https://doi.org/10.1162/rest_a_00925