A Study on the Difference of Heterogeneous Firms in Productivity, Production Scale and Production Technology

Lots of empirical researches using firm-level data from several countries have proved that there is substantial difference in productivity, production scale and production technology of firms which are classified into same industry. This document constructs a theoretical model to explain this phenomenon and uses micro-level data in China to testify the theoretical conclusion. The result indicates that foreign export affiliates, foreign affiliates, domestic export firms and domestic firms are significantly different in the production scale, productivity, and production technology.