International Market Power And Upgrade Of Export Commodity Structure

International market power and export commodity structure are very important topics in economic research, so far there are a lot of literatures appear in these two areas respectively. Although these two topics intersect with each other in a lot of fields, up to present little researchers pay attention to the relation of them, especially the study of their relation in China from the buyer and seller international market power angle. With the development of China's export, this research can be realized. This paper firstly analysis the mechanism of the effect between the two, then take advantage of the export data of China to estimate typical industry's international market power and export commodity structure, with the estimated results we analysis the effect to each other of the two. The main purposes of this paper are following: First, to find the reciprocal effect mechanism of international market power and export commodity structure. Second, take China as an object to analyze the relation between the two, so as to offer new empirical evidence to relative theory of these two areas. Third, find the developed trends and drive of International market power and export structure of the commodity, which can be a reference to the governments and enterprises.Theoretically, this paper takes advantage of the methods of the game theory to analysis the mechanism of reciprocal effect between international market power and export commodity structure. The results shows:First there is a possibility that either parameters benefit the other one when they act on each other, Second the drive ability of International market power to the export commodity structure depend on the investment direction of the profit, which is earn by the use of international market power. Third the ascend of the export commodity structure will enhance international market power prominently, but this effect need the supply ability of high quality material, or else it may decline the international market power.Empirically, this paper uses 2002-2008 Chinese chemical industry export data (provincial level) and properly revised Song-Marchant-Reed (2007) model to estimate 7 sub-industries' international market power through cross-section model, moreover we analyze the drive of the evolution of the buyer and seller's international market power from exogenous angle. Then this paper take advantage of Schott(2006) and export data of hs 4 digital level to estimate the export commodity structure of 11 chemical sub-industries from 1993 to 2008, also use the panel data model and VECM to study the evolution drive of the export commodity from domestic and aboard angle. Third, in order to avoid the endogenesis of the parameter, this paper use panel data DOLS model, which was constructed by Kao & Chiang (2000),to analyze the reciprocal effect of the buyer (seller) international market power and export commodity structure.The main empirical results are following:First the mechanism of good reciprocal effects between the buyer (seller) international market power and export commodity structure are not exist in China, but the effect of their growth rate shows that the favorable situation may realized in the future, buyer international market power and export commodity structure are negative to each other, export commodity structure are positive to the seller international market power. Second Chinese sub-industries' international market power are very low from 2002 to 2008, moreover buyer international market power's drive are very different from seller international market power, the polarization haven't appeared in the development of international market power. Third export commodity structure ascends quickly from 1993 to 2008, the main drives to its evolution are economic development and upgrade of labor productivity, exterior drive's power become poorer and poorer, moreover different sub-industries'export commodity structure have become polarized since 2003.Based on the above analysis, this paper put forward corresponding policy implications and suggestions, such as encourage material maufacture to produce high quality material, induce the enterprises to invest rightly,cultivate core enterprise and proficient workman. Expecting to expedite the establishment of good reciprocal effect of International market power and export commodity structure, so as to enhance China's earning power from the international trade.