Contemporary Finance & Economics ›› 2014, Vol. 0 ›› Issue (09): 1732-.

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Enterprise Scale Heterogeneity and Export Mode Choice: Indirect, Mixed and Direct Export

MA Lin-mei   

  1. (Liaoning Technical University, Huludao 125105, China)
  • Received:2014-04-08 Published:2021-01-21

Abstract: Based on the trade theory of heterogeneous firms and employing the two methods of the linear regression model and the ordinal multi-classification logistic regression model, this paper makes use of the Chinese enterprise survey data in manufacturing industry published by the World Bank in 2013 to explore the relationship between the four firm sizes (minitype, small, medium and large) and the three export modes (indirect, mixed and direct). The results indicate that as the size becomes larger, the firm is less likely to choose indirect and mixed export modes and more likely to choose direct export mode. This suggests that due to higher entry costs with the direct export mode, different enterprise can make a rational choice among indirect, mixed and direct export modes according to its own size characteristics. Thus, when making export promotion policies, China should give sufficient consideration to the enterprise scale and the three export modes.

Key words: enterprise scale;heterogeneity; firm productivity; indirect export; mixed export; direct export