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Institutional openness and enterprises’ export competitiveness: Evidence from a quasi-natural experiment in China

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  • Yang, Xiaojun
  • Zhu, Xinru
  • Yue, Zhonggang

Abstract

This study takes the establishment of Free Trade Zone (FTZ) as a quasi-natural experiment, and employs difference-in-differences method to explore the impact and mechanisms of institutional openness on enterprises’ export competitiveness. The findings indicate that institutional openness enhances the export competitiveness of enterprises, and this conclusion remains valid after various identification and robustness tests. The mechanism examination employing a mediation effect model reveals that institutional openness boosts enterprises’ export competitiveness through optimizing institutional environment, empowering innovation ability, and enhancing the effectiveness of foreign investment. Heterogeneity tests reveal that institutional openness has a more significant effect on enhancing the export competitiveness of enterprises in developed regions, mature enterprises, and high-tech enterprises. Our study underscores the importance of institutional openness in enhancing enterprises’ export competitiveness.

Suggested Citation

  • Yang, Xiaojun & Zhu, Xinru & Yue, Zhonggang, 2025. "Institutional openness and enterprises’ export competitiveness: Evidence from a quasi-natural experiment in China," Finance Research Letters, Elsevier, vol. 85(PE).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pe:s1544612325015375
    DOI: 10.1016/j.frl.2025.108283
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    References listed on IDEAS

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