| The economy growth of China has gradually lifted up since China joined world economy along with the trade liberalization events such as accessing to WTO.The degree of local trade liberalization enhanced as well.The trade liberalization provides opportunities for local enterprises as well as impacts on them.It is largely attributable to that trade liberalization can optimize the allocation of resources in the production elements market,and meanwhile,it can result in foreign capital rapidly entering local market,which lead to an intensive competition among local enterprises.The above factors might bring about the decrease of markup.So,is trade liberalization a resistance or an assistance to the increasement of local enterprise markup?In article review,related researches rarely involve China's condition.This article sorts and concludes the calculating methods on some key indicates—trade liberalization and enterprise markup,and applies micro-data to precisely calculate the markup in manufacturing enterprises and the degree of trade liberalization as a basis.This article attempts to systematically study the impact from trade liberalization on Chinese enterprise markup through theoretical analysis and solid evidence testing,and hopes to offer beneficial enlightenments for trade liberalization policy-making and the evolution way to promote enterprise markup.During the study process,this article mainly draws two conclusions on typical characteristics of the fact and on the economitric research.The typical characteristics of the fact include:the evolution trend of manufacturing enterprise markup and the degree of trade liberalization in China;the economic research includes:the impact from tariff concession on manufacturing enterprise markup and the influence from institutional evolution of trade liberilization on manufacturing enterprise markup.The typical characteristics of the fact show that,on one hand,the evolution trend of manufacturing enterprise markup is going up.The subsample,under different classification categories,manufacturing enterprise markup appears significant difference.Firstly,although the overall trend of manufacturing enterprise markup is going up,it still fluctuates in some years while receiving the outside impact effect Specifically,in 1999-2000,manufacturing enterprise markup gradually increased.With the boundary of accessing WTO in the end of 2001,in 2002,manufacturing enterprise markup significantly decreased.From 2003,it gradually lifted up.After 2004,it fluctuatedslightly and kept at a high level.To sum up,the evolution trend of manufacturing enterprise markup gradually increases year by year,but with some decreasein some years.Secondly,there are significant characteristic differences of the markup of the enterprise in the sample enterprises under the specific classification criteria.In different binary manufacturing industry,there is a big difference of the average markup in different kinds of manufacturing enterprises,among which the markup of the industries such as non-staple food processing,textile,oil processing,coking and nuclear fuel processing is at a higher level.There were significant differences of the markup of the enterprises of different ownerships.The markup of enterprises in Hong Kong,Macao and Taiwan was significantly higher than that of the state-owned and private enterprises in the period from 1999 to 2002.The gap was gradually narrowing with China's accession to WTO.The markup of the state-owned and private enterprises has transcended the foreign-funded enterprises and the enterprises in Hong Kong,Macao and Taiwan in 2004.The competition ability of the local enterprises was constantly improving.It has showed a trend of gradual convergence since 2005 and has tended to accord in the mid 2005.In addition,there is a significant difference in the aspect of markup of the manufacturing enterprises in different areas.Specifically,the markup of the manufacturing enterprises in the eastern districts is the highest and remains the advantage in the period as samples.Correspondingly,it is relatively low in the central and the western districts.On the other hand,the degree of liberalization of Chinese trade was on the rise and the hoist degree showed a characteristic from small to big and then to small.In the evolution of the average tariffs of the Chinese imports,it was declining year by year since joining the WTO in 1999 to 2005 as samples.It dropped to a lower level leading to a significantly increase of the degree of Chinese trade liberalization.It was easy to find that Chinese import tariff level basically remained a decreasing trend with small aptitude from 1999 to 2000 by analyzing the evolution details.While in 2001,it dropped violently in order to match the bilateral negotiations with China 's accession to WTO.As a result,the tariff level fell sharply in 2002 to actively fulfill the promise of tax cuts with joining the WTO formally in November 2001.However,the limit of China's tariff concession didn't finish only in 2002.It dropped step by step from 2003 to 2005 with the commitment of tax reduction gradually from China's accession to WTO.But it was more moderate than that of 2002.It was easy to know that the degree of liberalization of Chinese trade was on the rise in general and showed a characteristic from small to big and then to small due to the negative correlation between the imports tariffs and the degree of trade liberalization.In the respect of the empirical research,on the one hand,China's tariff concession significantly reduces the markup of the manufacturing enterprises in China.Based on the clarification of the internal mechanism of the impact of the tariff concession on Chinese manufacturing enterprises markup,the article empirically tests the impact from multiple perspectives of the overall samples,industries samples,regional samples,ownership samples and different enterprise scales.This paper further considers the influence of the possible endogenous problems on the paper research conclusion in the process of the measurement test and deals with the problem with the instrumental variable method.It indicates that the tariff concession effectively reduces the enterprise markup with a series of qualitative research results and the conclusion is very robust.It is easy to find that the trade liberalization will lead to the drop of the obstacles when the external enterprise enters into the domestic market and the increase of the amount of external enterprises entering the domestic markets by carding the economic logic.At the same time,the tariff concession will lead to the drop of the iceberg cost of the external enterprises to enter the domestic markets making such companies have better cost advantages.So the tariff concession enhances the competitiveness of the external enterprises through the above two ways and promotes the competition intensity faced by the local enterprises therefore forced to reduce the enterprise markup to face fierce competition from outside resulting in the drop of the markup of the local enterprises.Hereby it can be found that the Chinese government's trade policies such as import tariff concession will further enhance China's actual tariff liberalism and lower the markup of China's manufacturing enterprises significantly.On the other hand,the institutional evolution of trade liberilization significantly reduces the markup of Chinese manufacturing enterprises.Firstly,the event of China's accession to the WTO has significantly lowered the effect on the manufacturing enterprise markup.The article effectively controls the possible endogenous bias with the opportunity of successfully accession to WTO as a natural experiment based on the data of Chinese manufacturing enterprises as a research sample by adopting two kinds of differential method metering strategy of two setting ways.The metrology inspects the impact of the event of China's accession to the WTO on the markup of China's manufacturing enterprises.The result of the research shows that China's accession to WTO remarkably lowers the markup of Chinese manufacturing enterprises.It shows that the event of the trade liberalization significantly reduces the markup of Chinese manufacturing enterprises.Secondly,government subsidy has significantly increased the enterprise smarkup.Combing the internal mechanism of government subsidies on the enterprise markup,it can be found that the government subsidy by reducing the cost of enterprises significantly increased the enterprise markup.According to this,it is easy to find that the evolution of the system of trade liberilization has significantly reduced the cost of manufacturing enterprises in China. |
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