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Uncertainty and enterprise export recovery in China: Does the market integration matter?

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  • Xiugang Zhu
  • Kangjuan Lv
  • Jingkai Gao

Abstract

Maintaining the stability of foreign trade in an uncertain environment is crucial to building a new development pattern. By combing through the existing literature, this paper analyzes the impact of economic policy uncertainty on enterprise export recovery from the perspective of market integration. Firstly, theoretical analysis shows that economic policy uncertainty is expected to attenuate enterprise export recovery levels by amplifying export transaction costs. Secondly, the escalation in market integration is anticipated to mitigate the attenuation above effect through the mechanism of "enhanced production efficiency", while simultaneously amplifying it through the mechanism of "intensified market competition". Based on the empirical test of China’s micro-level data, it is found that the rise of market integration generally alleviates the weakening effect of economic policy uncertainty on enterprise export resilience, and this mitigation effect is more obvious for high-efficiency enterprises; The test results of further mechanism analysis and heterogeneity analysis are also consistent with the logic of theoretical analysis.

Suggested Citation

  • Xiugang Zhu & Kangjuan Lv & Jingkai Gao, 2024. "Uncertainty and enterprise export recovery in China: Does the market integration matter?," PLOS ONE, Public Library of Science, vol. 19(12), pages 1-21, December.
    • Handle: RePEc:plo:pone00:0309428
    DOI: 10.1371/journal.pone.0309428
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    References listed on IDEAS

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    Cited by:

    1. Qi, Yuan & Zhang, Yang, 2025. "Trade policy uncertainty and services sector exports: A labor cost stickiness perspective," Finance Research Letters, Elsevier, vol. 85(PE).

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