|
|
|
| SUNK COST, INSTITUTIONAL ENVIRONMENT AND GEOGRAPHICAL DYNAMICS OF FIRM EXPORTS |
| HU Xu-qian1,2, HE Can-fei1,2 |
1. School of Urban and Environmental Sciences, Peking University, Beijing 100871, China;
2. Peking UniversityLincoln Institute Center for Urban Development and Land Policy, Beijing 100871, China |
|
|
|
|
Abstract In order to understand the geographical dynamics of firm exports shaped by firms' export decisionmaking and export strategies, it is an important prerequisite to clarify why firms choose to export and the logic of choosing export markets. This paper agrees with the fact that small and medium-sized firms are the main force shaping the export dynamics of China. The main features of these firms include insufficient competitiveness and weak financial situation. From the perspective of cost relevance, this paper mainly uses the China Customs export data from 2002 to 2011 to explore the geographical dynamics and mechanism of firm exports from the perspective of cost. The empirical results illustrate that both the firms' export activity and the spillover of neighboring firms have significant double-sided effects on the entry and exit dynamics of firms in the export markets. On the one hand, firms' export activities are not conducive to firms entering new markets, however, help firms to remain in the existing markets; on the other hand, the spillover of neighboring firms creates favorable conditions for firms to enter new markets, but at the same time, it also accelerates the exiting process. What's more, in many areas, the market-oriented restructuring is relatively lagging behind, and government intervention is still a powerful factor leading the market dynamics, which has shaped China's unique system and market environment. The findings in this paper proves this assumption, that is, in the regions with lower marketization and higher degree of government intervention, the double-sided effects of firms' export activities and spillovers of neighboring firms are more significant and stronger. This means that the local institutional environment can influence the geographical dynamics of Chinese firms' exports, and also shape the motives and strategies of firms' exports.
|
|
Received: 13 August 2019
|
|
|
|
|
|
| [1] |
陈勇兵,李梦珊,赵羊,等.中国企业的出口市场选择:事实与解释[J].数量经济技术经济研究,2015,32(10):20-37.[Chen Yongbing, Li Mengshan, Zhao Yang, et al. Export markets choices of China's firms:Evidence and explanation[J]. The Journal of Quantitative & Technical Economics, 2015,32(10):20-37.]
|
| [2] |
黎明,郭琪,贺灿飞.邻近性与中国企业出口市场的地理扩张[J].世界地理研究,2018,27(1):1-11.[Li Ming, Guo Qi, He Canfei. Proximity and the geographical market expansion of Chinese exporters[J]. World Regional Studies, 2018,27(1):1-11.]
|
| [3] |
Zahler A. Essays on Export Dynamics[M]. Boston:Harvard University, 2011:1-40.
|
| [4] |
Herzer D, Nowak-Lehnmann D F. What does export diversification do for growth? An econometric analysis[J]. Applied Economics, 2006,38(15):1825-1838.
|
| [5] |
Albornoz F, Fanelli S, Hallak J C. Survival in export markets[J]. Journal of International Economics, 2016,102(5):262-281.
|
| [6] |
Schmeiser K N. Learning to export:Export growth and the destination decision of firms[J]. Journal of International Economics, 2012, 87(1):89-97.
|
| [7] |
Martincus C V, Carballo J. Is export promotion effective in developing countries? Firm-level evidence on the intensive and the extensive margins of exports[J]. Journal of International Economics, 2008,76(1):89-106.
|
| [8] |
Nitsch V. Die another day:Duration in German import trade[J]. Review of World Economics, 2009,145(1):133-154.
|
| [9] |
Barney J. Firm resources and sustained competitive advantage[J]. Journal of Management, 1991,17(1):99-120.
|
| [10] |
Chen H, Hsu W, Chang C. Independent directors' human and social capital, firm internationalization and performance implications:An integrated agency-resource dependence view[J]. International Business Review, 2016,25(4):859-871.
|
| [11] |
Sousa C M, Martínez-López F J, Coelho F. The determinants of export performance:A review of the research in the literature between 1998 and 2005[J]. International Journal of Management Reviews, 2008,10(4):343-374.
|
| [12] |
Majocchi A, Bacchiocchi E, Mayrhofer U. Firm size, business experience and export intensity in SMEs:A longitudinal approach to complex relationships[J]. International Business Review, 2005,14(6):719-738.
|
| [13] |
Pla-Barber J, Alegre J. Analysing the link between export intensity, innovation and firm size in a science-based industry[J]. International Business Review, 2007,16(3):275-293.
|
| [14] |
Cheng H, Yu C. Institutional pressures and initiation of internationalization:Evidence from Taiwanese small- and medium-sized enterprises[J]. International Business Review, 2008,17(3):331-348.
|
| [15] |
郭平.政治关系、制度环境与中国企业出口行为[J].当代财经, 2015(1):98-108.[Guo Ping. Political connection, institutional environment and export behaviors of Chinese enterprises[J]. Contemporary Finance & Economics, 2015(1):98-108.]
|
| [16] |
Zucker L G. Institutional theories of organization[J]. Annual Review of Sociology, 1987,13(1):443-464.
|
| [17] |
Wu F, Sinkovics R, Cavusgil S, et al. Overcoming export manufacturers' dilemma in international expansion[J]. Journal of International Business Studies, 2007,38(2):283-302.
|
| [18] |
Wang W, Ma H. Export strategy, export intensity and learning:Integrating the resource perspective and institutional perspective[J]. Journal of World Business, 2018,53(4):581-592.
|
| [19] |
Bernard A, Jensen J. Exceptional exporter performance:Cause, effect, or both?[J]. Journal of International Economics, 1999,47(1):1-25.
|
| [20] |
Melitz M. The impact of trade on intra-industry reallocations and aggregate industry productivity[J]. Econometrica, 2003,71(6):1695-1725.
|
| [21] |
范剑勇,冯猛.中国制造业出口企业生产率悖论之谜:基于出口密度差别上的检验[J].管理世界,2013(8):16-29.[Fan Jianyong, Feng Meng. The paradox of productivity of Chinese manufacturing exporters:Based on the test of export density difference[J]. Management World, 2013(8):16-29.]
|
| [22] |
Calof J. The relationship between firm size and export behavior revisited[J]. Journal of International Business Studies, 1994,25(2):367-387.
|
| [23] |
Gao G, Murray J, Kotabe M, et al. A "strategy tripod" perspective on export behaviors:Evidence from domestic and foreign firms based in an emerging economy[J]. Journal of International Business Studies, 2010,41(3):377-396.
|
| [24] |
Nguyen P. The impact of foreign investors on the risk-taking of Japanese firms[J]. Journal of the Japanese and International Economies, 2012,26(2):233-248.
|
| [25] |
Padmaja M, Sasidharan S. Sunk costs, firm heterogeneity, export market entry and exit:Evidence from India[J]. Journal of Quantitative Economics, 2017,15(2):367-393.
|
| [26] |
Aeberhardt R, Buono I, Fadinger H. Learning, incomplete contracts and export dynamics:Theory and evidence from French firms[J]. European Economic Review, 2014,68(5):219-249.
|
| [27] |
Araujo L, Mion G, Ornelas E. Institutions and export dynamics[J]. Journal of International Economics, 2016,98(1):2-20.
|
| [28] |
Baldwin R, Krugman P. Persistent trade effects of large exchange rate shocks[J]. The Quarterly Journal of Economics, 1989,104(4):635-654.
|
| [29] |
Dixit A. Entry and exit decisions under uncertainty[J]. Journal of Political Economy, 1989,97(3):620-638.
|
| [30] |
Roberts M J, Tybout J R. The decision to export in Colombia:An empirical model of entry with sunk costs[J]. The American Economic Review, 1997,87(4):545-564.
|
| [31] |
Bernard A, Jensen J. Why some firms export[J]. Review of Economics and Statistics, 2004,86(2):561-569.
|
| [32] |
Krugman P. Differences in income elasticities and trends in real exchange rates[J]. European Economic Review, 1989,33(5):1031-1046.
|
| [33] |
Campa J M. Exchange rates and trade:How important is hysteresis in trade?[J]. European Economic Review, 2004,48(3):527-548.
|
| [34] |
Reggiani C, Shevtsova Y. Trade and productivity in a transition economy:The role of industry and export destination[J]. Journal of Industry Competition and Trade, 2018,18(3):395-428.
|
| [35] |
Lieberman M, Lee G, Folta T. Entry, exit, and the potential for resource redeployment[J]. Strategic Management Journal, 2017,38(3):526-544.
|
| [36] |
Shaver J, Mitchell W, Yeung B. The effect of own-firm and otherfirm experience on foreign direct investment survival in the United States, 1987-92[J]. Strategic Management Journal, 1997,18(10):811-824.
|
| [37] |
Blomstrom M, Kokko A. Multinational corporations and spillovers[J]. Journal of Economic Surveys, 1998,12(3):247-277.
|
| [38] |
Ma A. Export spillovers to Chinese firms:Evidence from provincial data[J]. Journal of Chinese Economic and Business Studies, 2006,4(2):127-149.
|
| [39] |
Koenig P, Mayneris F, Poncet S. Local export spillovers in France[J]. European Economic Review, 2010,54(4):622-641.
|
| [40] |
Yu C, Ito K. Oligopolistic reaction and foreign direct investment:The case of the US tire and textiles industries[J]. Journal of International Business Studies, 1988,19(3):449-460.
|
| [41] |
Xu J, Hsu V, Niu B. The impacts of markets and tax on a multinational firm's procurement strategy in China[J]. Production and Operations Management, 2018,27(2):251-264.
|
| [42] |
Lieberman M, Asaba S. Why do firms imitate each other?[J]. Academy of Management Review, 2006,31(2):366-385.
|
| [43] |
Barber B, Odean T, Zhu N. Do retail trades move markets?[J]. Review of Financial Studies, 2009,22(1):151-186.
|
| [44] |
Gemayel R, Preda A. Does a scopic regime produce conformism? Herding behavior among trade leaders on social trading platforms[J]. The European Journal of Finance, 2018,24(14):1144-1175.
|
| [45] |
Aitken B, Hanson G, Harrison A. Spillovers, foreign investment, and export behavior[J]. Journal of International Economics, 1997,43(1/2):103-132.
|
| [46] |
Madsen P, Desai V. Failing to learn? The effects of failure and success on organizational learning in the global orbital launch vehicle industry[J]. Academy of Management Journal, 2010,53(3):451-476.
|
| [47] |
He C, Wei Y, Xie X. Globalization, institutional change, and industrial location:Economic transition and industrial concentration in China[J]. Regional Studies, 2008,42(7):923-945.
|
| [48] |
Stuart T. Network positions and propensities to collaborate:An investigation of strategic alliance formation in a high-technology industry[J]. Administrative Science Quarterly, 1998,43(3):668-698.
|
| [49] |
Ahn J, Khandelwal A K, Wei S. The role of intermediaries in facilitating trade[J]. Journal of International Economics, 2011,84(1):73-85.
|
| [50] |
Manova K, Zhang Z. Export prices across firms and destinations[J]. The Quarterly Journal of Economics, 2012,127(1):379-436.
|
| [51] |
Moulton B. An illustration of a pitfall in estimating the effects of aggregate variables on micro units[J]. The Review of Economics and Statistics, 1990,72(2):334-338.
|
| [52] |
Wooldridge J. Cluster-sample methods in applied econometrics[J]. American Economic Review, 2003,93(2):133-138.
|
| [53] |
贺灿飞,陈韬.外部需求冲击、相关多样化与出口韧性[J].中国工业经济,2019(7):61-80.[He Canfei, Chen Tao. External demand shocks, related variety and resilience of export[J]. China Industrial Economics, 2019(7):61-80.]
|
| [54] |
Peng M, Wang D, Jiang Y. An institution-based view of international business strategy:A focus on emerging economies[J]. Journal of International Business Studies, 2008,39(5):920-936.
|
|
|
|
2020, Vol. 35 
