No abstract

The importance of market scale really affects a set of economic orientations in real world, such as economic structure, trade patterns, competitive behaviours of firms, and decisions of government policies and enterprises, etc. Simultaneously, considering the production efficiency and product quality as the productivity calculation of one firm, our expanded model tries to answer how does the market scale of the world affect the operation and survival of enterprises and how does the asymmetrical market scales derive the changes of firms' exporting decisions. Our article gets the following two results. When the global market expands, we find that those combinations of production efficiency and product quality originally unable to serve the domestic market or be exported are turned to meet domestic or export demand. Next, the effect of the asymmetric scale between two countries' markets would derive the four areas which describe different export decisions under various production efficiency-product quality combinations. This explains that reasonable combinations of production efficiency and product quality will be the critical point to export.

The attitudes of developing countries for intellectual property rights (IPR) regulations and law enforcement are ambiguous. We seek to clarify this issue by structuring a model, simultaneously considering the IPR index and the strength of law enforcement of China in period 1996-2015. Firstly, the government of a developing country always holds the strictest attitude towards law enforcement. Secondary, the growing level of IPR leads to the decrease of the total welfare, but the decline of total welfare slows down. Third, the motivation of maximising total welfare induces the governments of developing countries to strengthen law enforcement. This provides internal motivation for development. The findings of this article show that developing countries have long-term internal motivations to improve their strength of IPR levels and law enforcement.

By taking firm heterogeneity in productivity into account in a monopolistic competition market in a general-equilibrium model setting, this paper investigates whether a stricter local content requirements (LCRs) can increase both productivity and production in the domestic intermediate-goods industry. The result shows that stricter LCRs policy cannot simultaneously increase both. The initial level of LCRs plays an important role in policy effectiveness. If it is below a critical level, a stricter LCRs can increase production but decrease productivity; however, production decreases but productivity increases if the initial LCRs are higher than the critical level.

The development of e-commerce platforms has resulted in changes in consumer behavior. Studies have also proven that e-commerce platforms could provide benefits to customers, such as the network effect and information sharing. With reference to existing research, this study extended the framework of the model proposed by Melitz (2003) and discovered that the zero cutoff profit (ZCP) curve and cross-border ZCP curve divided the area of the most likely combination of productivity levels into three regions. In addition, a combination of productivity levels closer to the upper-right corner indicates that the company is more capable of providing cross-border e-commerce services. If the consumer demand index of cross-border e-commerce platforms is different between two countries, then the country with the better cross-border e-commerce platforms is more likely to generate a network effect and increase information sharing among cross-border consumers, thereby helping the manufacturers to export more products and obtain higher profits.