Study On The Effect Of Export Followers Benefit From Pioneers

Since the reform and opening up policy, China has actively participated international division and corporation. The scale of foreign trade and investment is expanding continuously, and the total amount of trade in goods has become the largest in the world, and China’s status as a big country in foreign trade is continuously improved and consolidated. However, after the outbreak of the financial crisis, the growth of world economy slowed down. Trade protectionism continues to spread, the game around the market, resources, standards and rules has becoming increasingly fierce. The foreign trade environment facing China is getting more and more serious. The issue of imbalanced export market structure has become prominent. The traditional advantage of foreign trade is gradually weakened, and the traditional trade growth mode becomes unsustainable, which requires us to promote foreign trade through transforming scale expansion into quality improvement, extending export market to be global and diversified, in order to promote sustainable foreign trade growth and cultivate new advantages for our participation in international competition.In this paper, the first part is to summarize the influencing factors of firms’tendency to introduce new products and the first-mover’s and second-mover’s advantage based on firms’ entry order. On basis of scholar’s literatures, and focused on new products’entry into export market, this paper analyzes the sequence of entry between large and small firms, to find out whether followers can benefit from pioneers, so as to summarize policy measures to promote the export market diversification. In the part of empirical analysis, using the export data from 2000 to 2006 of China customs, based on panel data model and from the angle of new product’s entry, this paper addresses the impact of enterprise nature and scale on firms’ sequence of entry, and discusses the effect of pioneers and followers on each other. In the end, according to all the theoretical and empirical analysis, this paper summarizes the approach to improve the export market structure and develop diversified foreign trade.Through all the theories and empirical analysis, this paper puts forward five main conclusions:First, among exporters, whether pioneers or followers, private enterprises occupy the dominant position, foreign invested enterprises take the second place, state-owned enterprises account for the minimum market. Second, the entry of followers is positively related to the survival of pioneers, that is the longer pioneers exist, the more likely followers to enter. Third, the duration of pioneers is negatively related to the number of followers, that is the more followers enter, the shorter pioneers exist. Fourth, small firms are more likely to be export pioneers, while large firms wait for the right opportunities to follow to export. Finally, followers enter and remain with larger export scale and more return than pioneers. And followers can get positive externalities from pioneers.