Foreign Demand, Competition Strategy, and Export Markups: Evidence from Chinese Multi‐Product Exporters

Ming, Xu; Zhong, Tenglong; Xie, Qian; Liu, Hongkui

doi:10.1111/cwe.12423

Cited by 8 publications

(3 citation statements)

References 35 publications

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“…Existing studies typically employ price and quality (Eckel et al, 2015;Feng et al, 2017;Xu et al, 2022) to discuss firms' export performance. This section therefore explores further the effects of product switching during the period of policy support on firms' export performance with regard to export unit price and product quality.…”

Section: Export Performance Of the Product Switchingmentioning

confidence: 99%

Industrial Policy, Product Switching, and Export Performance

Dong,

Yu,

Shi

et al. 2024

China and World Economy

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Industrial policy can promote economic growth and industrial upgrading by encouraging enterprises to adopt product switching. By utilizing comprehensive industrial policies and customs trade databases from 2000 to 2015, this paper found that firms with product ranges within policy‐supported areas were more active in product switching. Among all the enterprises that adopted the product switching, those with nonmain products in policy‐supported areas were more inclined to adjust their main product. They tended to transform nonmain product to main product as opposed to introducing new main product in order to effectively leverage their export experience and established technology. Whereas, for enterprises whose main product was within the policy‐supported areas, their tendency to switch products significantly decreased. Mechanism analysis suggested that policy support, by alleviating industry distress and mitigating excessive market competition, encouraged firms to switch products to areas with policy backing. Moreover, we estimated trade performance after product switching from the perspective of product unit price and export product quality. We found that for firms whose main product was in policy‐supported areas, such switching was more likely to result in “low price, high quality” exports, whereas for firms with nonmain products in supported areas, such switching was more likely to lead to “high price, low quality” exports, which indicates that firms switching to policy‐supported areas need to continuously develop their core competencies and operate effectively to improve their production performance.

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Section: Export Performance Of the Product Switchingmentioning

confidence: 99%

Industrial Policy, Product Switching, and Export Performance

Dong,

Yu,

Shi

et al. 2024

China and World Economy

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“…Besides, a technology spillover effect from foreign patents granted by China helps to improve Chinese fi rms' innovation ability. The improvement in fi rm innovation level in turn improves the production effi ciency of fi rms (Manova and Yu, 2017;Xu et al, 2022) or improves the quality of export products directly (Pang et al, 2022).…”

Section: A Simple Analytical Frameworkmentioning

confidence: 99%

International Patent Cooperation, Patent Prosecution Highway Agreements, and Export Product Quality

Duan,

Li,

Zhong

2023

China and World Economy

Self Cite

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This paper investigates how international cooperation for patent examination using Patent Prosecution Highway (PPH) agreements has affected the quality of firms' exports. Taking the PPH agreements signed between China and the export destinations as a quasi‐natural experiment, we established a difference‐in‐difference‐in‐differences model. We found that international cooperation for patent examination caused firms to increase export quality to PPH partners in patent‐intensive industries to a greater extent. This effect was more profound among PPH partners with stronger intellectual property protection, differentiated products and core products, and agreements along with the Patent Cooperation Treaty. We also found that PPH agreements increased the number of Chinese patent applications filed in PPH partners, patent applications by PPH partners in China, and the level of innovation, all of which constitute the major channels through which export quality to PPH partners increases. Our findings demonstrate that international patent cooperation has played an important role in promoting international trade quality.

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“…Admittedly, subsidy policies might achieve a certain degree of crowding out effect on export innovation, that is, falling into the “low markup rate trap” (X. Dai et al, 2018; Xu, 2019). Meanwhile, it might not change the direction of the subsidy policy’s influence on export innovation.…”

Section: Model Establishment and Research Hypothesismentioning

confidence: 99%

Empirical Analysis of Subsidy Industrial Policy’s Effect on Export Innovation in the Chinese Manufacturing

Li,

Wang,

Dong

et al. 2023

Sage Open

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The relatively low export innovation capacity is not conductive to the steady transformation and upgrading of China’s manufacturing industry, and it is necessary to implement suitable policies to enhance export innovation capacity. This study empirically analyzes the data of 827,471 manufacturing enterprises from 2000 till 2013 to investigate the impact of subsidy policy on export innovation. The overall results show that China’s subsidy policy has a significant crowding-out effect on export innovation, and subsidy for relatively small enterprises is more conducive to promoting export innovation; however, enterprises’ independent investment does not own much impact on export innovation. The econometric results made from perspectives of the sub-region and the industry reveal that subsidy policy is not conducive to export innovation, independent investment is not beneficial to export innovation, and export innovation ability is positively correlated with enterprise scale, but the influence coefficient shows obvious differences.

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Foreign Demand, Competition Strategy, and Export Markups: Evidence from Chinese Multi‐Product Exporters

Cited by 8 publications

References 35 publications

Industrial Policy, Product Switching, and Export Performance

Industrial Policy, Product Switching, and Export Performance

International Patent Cooperation, Patent Prosecution Highway Agreements, and Export Product Quality

Empirical Analysis of Subsidy Industrial Policy’s Effect on Export Innovation in the Chinese Manufacturing

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