Impacts of Competitive Position on Export Propensity and Intensity: An Empirical Study of Manufacturing Firms in China
AbstractWe examine the impacts of competitive industry position on firms’ export propensity and intensity in China. Drawing on the resource-based view and the structure-conduct-performance paradigm of firm behavior, we investigate whether firms with competitive industry position through cost leadership or differentiation strategy have different export behaviors. We use a longitudinal data of 213,662 manufacturing firms in China from 1998 to 2005 to show that firms that have developed competitive advantages in the domestic market are more likely to export and have higher levels of export intensity. Indigenous and foreign manufacturing firms exhibit different patterns of export behaviors. Foreign firms with differentiation advantages focus on local market expansion instead of seeking opportunity in export markets.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 5674.
Date of creation: Jul 2007
Date of revision:
Find related papers by JEL classification:
- F18 - International Economics - - Trade - - - Trade and Environment
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-11-17 (All new papers)
- NEP-CNA-2007-11-17 (China)
- NEP-COM-2007-11-17 (Industrial Competition)
- NEP-CSE-2007-11-17 (Economics of Strategic Management)
- NEP-INT-2007-11-17 (International Trade)
- NEP-TRA-2007-11-17 (Transition Economics)
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