Market Size of Destination, Dual-Product Market and Export Product Mix of Chinese Multi-Product Firms
Market Size of Destination, Dual-Product Market and Export Product Mix of Chinese Multi-Product Firms

Author: Lin Sun

Publisher:

Published: 2023

Total Pages: 0

ISBN-13:

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Whether there exists a dual-product market in China. In fact, there are obvious distribution differences between low-end products and high-end products, which are dominated by low-end products in a "pyramid" shape. This paper explores the resource allocation in multi-product firms based on the perspective of dual-products, which is an important part of achieving high-quality development of trade. This paper explores the impact of the market size of destination on the export product mix of China's multi-product firms. It is found that with the expansion of the market size of destination, China's multi-product firms will be more inclined to export and sell their core products. Furthermore, this paper explores two intermediate mechanisms: competition effect and digital effect, both of which can effectively promote the "tilt effect" of the market size of destination on the export products of multi-product firms.

China's exporters and importers : firms, products and trade partners
China's exporters and importers : firms, products and trade partners

Author: Kalina Manova

Publisher:

Published: 2009

Total Pages: 26

ISBN-13:

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This paper uses newly available data on Chinese trade flows to establish novel and confirm existing stylized facts about firm heterogeneity in trade. First, the bulk of exports and imports are captured by a few multi-product firms that transact with a large number of countries. Second, the average importer imports more products than the average exporter exports, but exporters trade with more countries than importers do. Third, compared to private domestic firms, foreign affiliates and joint ventures trade more and import more products from more source countries, but export fewer products to fewer destinations. Fourth, the relationship between firms' intensive and extensive margin of trade is non-monotonic, differs between exporters and importers, and depends on the ownership structure of the firm. Fifth, firms frequently exit and re-enter into trade and regularly change their product mix and trade partners, but foreign firms exhibit less churning. Finally, most of the growth in Chinese exports between 2003-2005 was driven by deepening and broadening of trade relationships by surviving firms, while reallocations across firms contributed only 30%. These stylized facts shed light on the cost structure of international trade and the importance of foreign ownership for firms' export and import decisions.

Multi-product Firms and Exporting: a Developing Country Perspective
Multi-product Firms and Exporting: a Developing Country Perspective

Author: Robert J. R. Elliott

Publisher:

Published: 2010

Total Pages:

ISBN-13:

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Abstract: In this paper we make the distinction between single-product and multi-product firms to contribute to our understanding of the complex relationship between multinational enterprises (MNEs), exporting and economic development. Using firm-level data for Thailand we show that the number of goods produced causes a larger variation in exports volumes than production volumes. Whilst the number of products and the total volume of exports are positively correlated we find, in contrast to US studies, a negative correlation between the number of products produced and the volume of production per product. We then investigate the characteristics associated with multi-product firms and find a distinction between foreign-owned and domestic firms. The presence of foreign firms producing single products solely for the domestic market as well as those producing many products for export demonstrates the diversity of behaviour of foreign-owned firms in developing countries

Multi-product Firms and Product Turnover in the Developing World
Multi-product Firms and Product Turnover in the Developing World

Author: Pinelopi Koujianou Goldberg

Publisher:

Published: 2008

Total Pages: 29

ISBN-13:

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Recent theoretical work predicts that an important margin of adjustment to deregulation or trade reforms is the reallocation of output within firms through changes in their product mix. Empirical work has accordingly shifted its focus towards multi-product firms and their product mix decisions. Existing studies have however focused exclusively on the U.S. Using detailed firm-level data from India, we provide the first evidence on the patterns of multi-product firm production in a large developing country during a period (1989-2003) that spans large-scale trade and other market reforms. We find that in the cross-section, multi-product firms in India look remarkably similar to their U.S. counterparts, confirming the predictions of recent theoretical models. The time-series patterns however exhibit important differences. In contrast to evidence from the U.S., product churning--particularly product rationalization--is far less common in India. We thus find little evidence of "creative destruction". We also find no link between declines in tariffs on final goods induced by India's 1991 trade reform and product dropping. The lack of product dropping is consistent with the role of industrial regulation in India, which, like in many other developing countries, may prevent an efficient allocation of resources.

China's Growing Role in World Trade
China's Growing Role in World Trade

Author: Robert C. Feenstra

Publisher: University of Chicago Press

Published: 2010-03-10

Total Pages: 603

ISBN-13: 0226239721

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In less than three decades, China has grown from playing a negligible role in international trade to being one of the world's largest exporters, a substantial importer of raw materials, intermediate outputs, and other goods, and both a recipient and source of foreign investment. Not surprisingly, China's economic dynamism has generated considerable attention and concern in the United States and beyond. While some analysts have warned of the potential pitfalls of China's rise—the loss of jobs, for example—others have highlighted the benefits of new market and investment opportunities for US firms. Bringing together an expert group of contributors, China's Growing Role in World Trade undertakes an empirical investigation of the effects of China's new status. The essays collected here provide detailed analyses of the microstructure of trade, the macroeconomic implications, sector-level issues, and foreign direct investment. This volume's careful examination of micro data in light of established economic theories clarifies a number of misconceptions, disproves some conventional wisdom, and documents data patterns that enhance our understanding of China's trade and what it may mean to the rest of the world.

China's Changing Trade and the Implications for the CLMV
China's Changing Trade and the Implications for the CLMV

Author: Mr.Koshy Mathai

Publisher: International Monetary Fund

Published: 2016-09-01

Total Pages: 84

ISBN-13: 1475531710

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China’s trade patterns are evolving. While it started in light manufacturing and the assembly of more sophisticated products as part of global supply chains, China is now moving up the value chain, “onshoring” the production of higher-value-added upstream products and moving into more sophisticated downstream products as well. At the same time, with its wages rising, it has started to exit some lower-end, more labor-intensive sectors. These changes are taking place in the broader context of China’s rebalancing—away from exports and toward domestic demand, and within the latter, away from investment and toward consumption—and as a consequence, demand for some commodity imports is slowing, while consumption imports are slowly rising. The evolution of Chinese trade, investment, and consumption patterns offers opportunities and challenges to low-wage, low-income countries, including China’s neighbors in the Mekong region. Cambodia, Lao P.D.R., Myanmar, and Vietnam (the CLMV) are all open economies that are highly integrated with China. Rebalancing in China may mean less of a role for commodity exports from the region, but at the same time, the CLMV’s low labor costs suggest that manufacturing assembly for export could take off as China becomes less competitive, and as China itself demands more consumption items. Labor costs, however, are only part of the story. The CLMV will need to strengthen their infrastructure, education, governance, and trade regimes, and also run sound macro policies in order to capitalize fully on the opportunities presented by China’s transformation. With such policy efforts, the CLMV could see their trade and integration with global supply chains grow dramatically in the coming years.

A Basic Guide to Exporting
A Basic Guide to Exporting

Author: Jason Katzman

Publisher: Skyhorse Publishing Inc.

Published: 2011-03-23

Total Pages: 385

ISBN-13: 1616081112

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Here is practical advice for anyone who wants to build their business by selling overseas. The International Trade Administration covers key topics such as marketing, legal issues, customs, and more. With real-life examples and a full index, A Basic Guide to Exporting provides expert advice and practical solutions to meet all of your exporting needs.

Diversification, Economies of Scope, and Exports Growth of Chinese Firms
Diversification, Economies of Scope, and Exports Growth of Chinese Firms

Author: Mercedes Campi

Publisher:

Published: 2018

Total Pages: 22

ISBN-13:

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In the 1990s, China started a process of structural reforms and of trade liberalization, which was followed by the accession to the World Trade Organization (WTO) in 2001. In this paper, we analyze trade patterns of Chinese firms for the period 2000-2006, characterized by a notable increase in exports volumes. Theoretically, in a more open economy, firms are expected to move from the production of a set of less-competitive products towards more internationally competitive ones, which implies specialization. We study several stylized facts on the distribution of Chinese firms trade and growth rates, and we analyze whether firms have diversified or specialized their trade patterns between 2000 and 2006. We show that Chinese export patterns are very heterogeneous, that the volatility of growth rates depends on the level of exports, and that volatility is stronger after trade liberalization. Both, diversification in products and destinations have a positive impact on trade growth, but diversification of destinations has a stronger effect. We conclude that the success of Chinese exports is not only due to an increase in the intensive margin, related to the existence of economies of scale, but also due to an increase in the extensive margin, related to the existence of economies of scope.