This paper contributes to the literature by identifying the causal effect of firm investment on exporting behavior. The identification hinges on regional variations in the 2004 value-added tax pilot reform in China, which generated positive investment shocks. The instrumental variable estimation...

Product quality is widely regarded as an important determinant for economic development. This paper investigates whether horizontal foreign direct investment (FDI) improves or deteriorates the quality of domestic firms' exports. We use China's FDI regulation changes in 2002 as an instrument...

This study uses Chinese firm export data to investigate the heterogeneous impact of economic policy uncertainty (EPU) faced by firms on export recovery, and then explores the moderating effect of the regional digital economy. We find that the rise in EPU due to external shocks weakens firms'...

Data for OECD countries document: 1. imports and exports are about three times as volatile as GDP; 2. imports and exports are pro-cyclical, and positively correlated with each other; 3. net exports are counter-cyclical. Standard models fail to replicate the behavior of imports and exports,...