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Impacts of Competitive Position on Export Propensity and Intensity: An Empirical Study of Manufacturing Firms in China

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  • Fung, Hung-gay
  • Gao, Gerald Yong
  • Lu, Jiangyong
  • Mano, Haim

Abstract

We 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.

Suggested Citation

  • Fung, Hung-gay & Gao, Gerald Yong & Lu, Jiangyong & Mano, Haim, 2007. "Impacts of Competitive Position on Export Propensity and Intensity: An Empirical Study of Manufacturing Firms in China," MPRA Paper 5674, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:5674
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    File URL: https://mpra.ub.uni-muenchen.de/5674/1/MPRA_paper_5674.pdf
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    References listed on IDEAS

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    1. Yiannis E. Spanos & George Zaralis & Spyros Lioukas, 2004. "Strategy and industry effects on profitability: evidence from Greece," Strategic Management Journal, Wiley Blackwell, vol. 25(2), pages 139-165, February.
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    Cited by:

    1. Dahai Fu & Yanrui Wu, 2013. "Export Survival Pattern and Determinants of Chinese Manufacturing Firms," Economics Discussion / Working Papers 13-18, The University of Western Australia, Department of Economics.

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    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment

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