Heterogeneity in Trade Duration and Firm Subsidy-Evidence from the Annual Survey of Chinese Industrial Firm Data in 1998-2007

Using the Annual Survey of Chinese Industrial Firm over the period 1998-2007, we have investigated the impact of the public subsidy on the firm survival rate of new exporting firms by the survival analysis techniques. We find that the median survival time of Chinese exporting is short, just 2 years and the mean duration is 2.5-2.6 years , which is consistent with the present survival literatures. Conditioning on the firm-specific variables , the public subsidy has negative effect on the survival rate and the ownership of enterprise matters. It also documents that the longer firms stay in the exporting market , the lower the hazard rate and the firms productivity, export intensity, the amount of the foreign capital have significantly positive effect on the survival probability.