The Export Quality and Firm Heterogeneity of the Food Industry in China

Using a highly disaggregated firm-level dataset, this study estimates the export quality of firms in the Chinese food industry and investigates its potential determinants from the perspective of firm heterogeneity. The results indicate that the general trend of firms' export quality in the Chinese food industry first declines and then progressively increases over time. As sub-samples, firms in the Eastern region, privately owned firms, and small and medium-sized firms have higher export quality than other types of firms. Notably, most growth in the aggregate quality of the Chinese food sector is driven by resource mobility across firms. Regarding firm heterogeneities, total factor productivity, export intensity, processing trade, and foreign direct investment act as the main stimulus for quality upgrading, the capital intensity affects export quality negatively. Finally, the impact of these positive factors is especially weak in Western firms and large firms, and the inhibition of capital intensity is more obvious in Eastern and privately owned firms.