Export or Not with Productivity Heterogeneous Enterprises? Empirical Evidence from China’s Bio-Pharmaceutical Industry

Abstract

In this paper, the strategy choice of export or not of Chinese biomedical enterprises has been empirically analyzed under the assumption of firm’s productivity heterogeneity of new - new trade theory. With the Probit and Tobit model regression analysis on enterprise productivity and export-oriented strategy choice, a positive correlation between the level of productivity and export strategy has been found and the productivity is the key factor in deciding whether to choose the export-oriented strategy or not, and the results of this study do not support the “productivity paradox”.