Trade economists have found that exporters usually have higher markups than firms that do not export. Our empirical work shows, however, that the markups of exporters in China are significantly lower than other firms in China. The result is both economically and statistically significant, and...

The entry of China into world markets has been one of the strongest recent shocks to world trade and advanced countries' industrial sectors. This is particularly true for Italy where labour-intensive, low-technology production represents a large share of output. Using Italian manufacturing...