We present a heterogeneous-firm model in which management ability increases both pro- duction efficiency and product … quality. Combining six micro-datasets on management prac- tices, production and trade in Chinese and American firms, we find … inputs, and imported inputs from more advanced countries. The structural estimates indicate that management is important for …

We identify a puzzling management practice gap in China. In the South, a one standard deviation increase in firms …' management competency is associated with a 7.5 percent improvement in sales productivity and a 29.2 increase in profitability ….1 percent in management practices and in all aspects of administration. We conjecture this is partially related to the …