The Dual Margin Analysis Of China’s Export Growth

In recent years, China’s export growing rapidly, and leaped into the world’ssecond-largest trading nation. However, with the rapid growth of China’s exports,there are series of problems: decline in trading profits (the added value that China canget from every export product is declining),the degradation of trade environment(Chinese products in foreign markets frequently subject to anti-dumpinginvestigations)as well as the weakness to withstand external shocks (reflected in theevent of a regional or global economic crisis, China’s exports vulnerable to largefluctuations)and so on. The problems of China’s export growth has been attracting lotsof academic attention, however, even though we know that China’s export growthmust be changed from the intensive growth mode to extensive growth mode, but welack the analysis method that is based on micro-level export products. We alwaystend to get some proposed measures at macro level, and lacking of relatively moretargeted measures in the specific practice. Fortunately, in recent years, a lot ofresearch concerns the new trade theory on abroad, whose basis thought isheterogeneity in the enterprise business model based on the study of internationaltrade, especially exports growth problems. On the basis of Heterogeneity model,a lotof research(especially the foreign researchers) focus on the decomposition of exportgrowth. We introduce the dual margin decomposition theories, in order to analyzeChina’s export status; we combine the firm heterogeneity model of trade with dualmargin theories. This method not only greatly relaxes the requirements of our data,but also makes us understand China’s export growth better by the micro level. China’sexport growth for dual margin decomposition is for the purpose of finding therealization of China’s export growth in more stable and rapid causes, and thusprovides a theoretical reference for the relevant decision-makers, and it is our originalintention of this study.In this paper, we first use the classification of HS-1996,under the six-digitproduct classification data to make a description about China’s export growth, so as to get the answer about the path of China’s export growth mainly along, that is the basicquestion to us; secondly learn from Kancs, D (2007) for the study of South-EastEurope export growth, we use the related data to finish an empirical analysis aboutChina’s export growth.limited availability of data and the limited research effort, weselected eight of China’s most representative export trade country-the United States,Japan, Britain, South Korea, Canada, France, Germany, Russia, as our object of study,using the trade model heterogeneity and related theory, we compose China’s exportgrowth into deepening and widening margins in two parts. Because welfareimplications of trade growth depends on the mode of growth: more products, moretypes of export or at a higher price on the export, or on a larger scale export products,this article will discuss China’s export growth mainly along the margins to achievethis objective problems which, on this basis, we will achieve that affect each marginaldiscuss specific motives, in order to find the key factor to optimize China’s exportgrowth structure.Our empirical results show that: though the export of new products play muchmore important roles, while China’s export growth is still mainly through the oldincumbent firms to export more products (marginal deepening trade expansion).Chinaneeds to improve the terms of trade depends more on new businesses as well as newproducts enter the export market (wide expansion of trade margins).We also foundthat, compared with the fixed trade costs fall, the decline in variable trade costs willlead to higher export growth. These conclusions will help us to develop specificpolicy recommendations.Of course, limited to the author’s academic standards, there are manyshortcomings in this article, the last part of this paper presents the limitations of thisstudy and future research directions.