Description/Abstract
This paper studies the determinants of firm-level revenues, as a measure of the performance of firms in China's domestic and export markets. The analysis of the determinants of the aforementioned outcomes calls for a mixed linear-nonlinear econometric approach. The paper proposes specifying a system of equations, which is inspired by Basmann's work and recent theoretical work in international economics and conducts comparative static analyses regarding the role of exogenous shocks to the system to flesh out the relative importance of transmissions across outcomes.
Document Type
Working Paper
Date
Fall 9-2017
Keywords
Spatial Econometrics, Spillovers, Panel-Data Econometrics, Nonlinear Systems, Firm-Level Sales, Chinese Firms
Language
English
Series
Working Papers Series
Disciplines
Econometrics | Economics | International Economics
ISSN
1525-3066
Recommended Citation
Baltagi, Badi H.; Egger, Peter H.; and Kesina, Michaela, "Determinants of Firm-Level Domestic Sales and Exports with Spillovers: Evidence from China" (2017). Center for Policy Research. 241.
https://surface.syr.edu/cpr/241
Accessible PDF version
Source
Local input
Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.
Additional Information
Working paper no. 209
This paper is prepared in honor of Bob Basmann's contributions in theoretical and applied econometrics. Basmann's work on systems of equations in structural model estimation (Basmann, R.L., 1957, A generalized classical method of linear estimation of coefficients in a structural equation. Econometrica 25, 77-83; Basmann, R.L., 1959, The computation of generalized classical estimates of coefficients in a structural equation. Econometrica 27, 72-81) and on observational equivalence issues in testing for causation (Basmann, R.L., 1988, Causality tests and observationally equivalent representations of econometric models, Journal of Econometrics, 39(1-2), 69-104) are guiding lights on performing rigorous estimation of systems of equations. The authors gratefully acknowledge the editor Daniel Slottje and numerous helpful comments by two anonymous reviewers