Abstract:
It is important for China to optimize the model of openness after economics crisis. We assume that firms facing increasing marginal cost have the substitution effect between different markets. Using the Industrial Enterprise Statistics Database from 1998~2007, we decompose the sales volatility in different markets and find the following regularities. Firstly, foreign and domestic markets are negatively related due to the increasing marginal cost. Secondly, the volatility of export sales increase with export share, while the volatility of domestic sales decrease with export share. The total volatility falls at first and then rises as export share increases. Third, firms engaged in processing trade or with higher inventory accumulation have a stronger substitution effect between different markets.
基金资助: *本文是国家社会科学基金项目(项目编号:13BJL050)阶段性成果,感谢国家社科基金项目(项目编号:12BJL049)的支持。感谢2013年英国格拉斯哥大学“Globalization of Chinese Industrial Sector: Productivity, Trade and Finance”研讨会与2013年英国诺丁汉大学GEP研究中心举办的“Structural Change and Trade Efficiency”国际研讨会上多位学者的建设性意见。感谢匿名审稿人的宝贵意见。文责自负。
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