Contemporary Finance & Economics ›› 2020, Vol. 0 ›› Issue (12): 99-111.

• Industry & Trade • Previous Articles     Next Articles

Trade Facilitation and Export Adjustment of China's Multi-Product Enterprises

TU Yuan-fen   

  1. Jiangxi University of Finance and Economics, Nanchang 330013, China
  • Received:2020-04-24 Revised:2020-09-05 Online:2020-12-15 Published:2021-01-07

Abstract: Trade facilitation has greatly reduced trade costs, in turn it will certainly affect the export behaviors of the multi-product enterprises. This paper establishes a theoretical model of the impact of trade facilitation on the export behaviors of multi-product companies and conducts an empirical study with the data of 2009-2015 at the Chinese enterprise level. The findings indicate that the improvement of trade facilitation in the destination country will lead to a decrease in the category of export products and an increase in the skewness of the distribution of export products, which will cause the multi-product firms to export more core products with comparative advantages. The results of the expanded analysis show that faced with the improvement of the level of trade facilitation in the export market, the export adjustment of the multi-product enterprises exhibits significant heterogeneity. The processing trade and the enterprises with a short history or smaller scale will largely reduce the category of their export products and focus more on exporting core products. According to this, multi-product firms should carefully choose their export product mix for different export markets.

Key words: trade facilitation, multi-product export firms, export product category, export product distribution

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