Abstract: Institutional environment has become an important factor which influences the behaviors of the export enterprises. However, during the period of economic transition with present imperfect formal institutions, political connection as an informal institution is also playing an important role. Based on the data of investment climate survey from World Bank, this paper analyzes the relationships between political connection, institutional environment and corporate export behaviors. The results show that both political connection and institutional environment can positively impact the “extensive margin” and “intensive margin” of the export enterprises, and there exists a significant alternative relationship between the two. Political connection and institutional environment have a significant positive effect on the extensive margins and intensive margins of exports of non-state-owned holding companies, while they have a significant positive effect only on the extensive margin of the export behaviors of state holding enterprises and on the intensive margin of the export behaviors of foreign-controlled enterprises.

Key words: political connection; institutional environment; corporate export