This paper explores the interaction between Chinese electronic firms’ total factor productivity (TFP) and their export strategies, revealing there is a causal relationship between exporting and productivity growth. Based on the data of Chinese electronics firms in the period from 2005 to 2007, TFPs are estimated by a productivity estimator following Levinsohn-Petrin method. With propensity score matching, significant evidence which shows the mutual causal effect of firms’ export activities and TFP growth can be found, supporting the trade models with firm heterogeneity by Chinese case.
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