Foreign competition and export diversification: Evidence from domestic firms in China
作者: Wang, XF; Liu, HY; Wang, LX
单位: 湖北经济学院新财经交叉研究院 华中科技大学经济学院
期刊：World Economy
Abstract: This study investigates the effects of foreign firms on the product diversification of domestic exporters in China. The result shows that domestic exporters react to the competition of foreign firms by reducing their product diversification. Firms drop the marginal products and concentrate on core products, and they distribute their exports more evenly among the product varieties they retained. Mechanism tests suggest that the competition of foreign firms reduces the sales, efficiency and R&D expenditure of domestic firms. And the effects are more pronounced for SOEs and firms with larger scales. This study explains the decline in the export diversification of domestic firms in China and contributes to the understanding of the variety adjustment of firms in the face of competitive pressure.
DOI: 10.1111/twec.13654
链接: https://doi.org/10.1111/twec.13654