The Product Quality Heterogeneity of China Firms'Export:Measurement and Facts

We measure product quality of China's exports at firm level and summarize the related styled facts.We arrived at the following conclusions that the average quality level is increasing because of the incumbent firms'quality upgrading;the higher quality means the longer persistence and the larger extensive margin;the quality upgrading effects mainly happen in the second year;the average quality level of local firms is decreasing because of lots of entering of low quality firms;and the quality upgrading effects,persistence and extensive margin of local firms are all worse than foreign firms.Therefore,upgrading product quality is higher pursuit of local firms.