The Study Opn The Dual Margins Of China’s Cultural Products Export Growth

With the continuous development of world economy and deeper national cultural exchange,cultural products trade has become an important form of current international trade.In recent years,China’s cultural products trade has grown rapidly.In 2014,the amount of China’s cultural products trade reached 54.928 billion dollars,which includes the export amount of 48.339 billion dollars.Cultural products trade has become a new engine of China’s economic growth,and an important pillar of the national economy.It also has been taken into the national strategic planning.The export plays an important role of China’s cultural products trade.Therefore,the study on the dual margins of cultural products export growth and its determinants brings a significant meaning to the growth of economy and cultural soft power in China.Based on the heterogeneous firm trade theory,the paper selects China’s cultural products export data during 2005 to 2014,measures its status and dual margins,tests its determinants in the use of extended gravity model.Three parts are included in the main contents of this paper.Firstly,the paper reviews lots of foreign and domestic literatures,finds that the heterogeneous firm trade theory proposed by Melitz(2003)has provided a solid theoretical foundation for the study on dual margins.Many scholars carried on the empirical analysis of it,but almost no research is about the dual margins of China’s cultural products export growth from now on.Therefore,there is still a lot of space and value for the research on this point.Next,this paper analyzes the export status of China’s cultural products and measures its dual margins.By collecting and sorting HS-6-digit product-level data,we find that although the scale of China’s cultural products exports has increased rapidly in recent years,the trade structure and trade layout are not reasonable.Specifically reflected in the following aspects:The export types and export markets of China’s cultural products are too concentrated,visual arts and handicrafts account for 40%of the total export,and about half of the cultural products are exported to the United States and Hong Kong.Then,we estimate the dual margins of China’s cultural products export to the world and the main trading partners with the method of Hummels and Klenow(2005).The result shows that China’s cultural products export growth is mainly depends on the intensive trade margin,which means that quantity growth is the main reason of China’s cultural products export growth.This growth style is vulnerable to external factors.Finally,the paper tests the dual margins of China’s cultural products export growth and its determinants based on the extended gravity model.The cultural distance is quantified by Hofstede’s cultural dimension theory.We use the random effects model to study the impact of bilateral economic scales,geographical distance,cultural distance,cultural products productivity,exchange rate,fixed trade cost and external shock factor on the dual margins of the export growth in China’s cultural products trade.The empirical results show that:(1)Bilateral cultural distance has negative effect on the intensive margin of China’s cultural products export growth and have no effect on the extensive margin.That is to say,the greater the cultural distance between two countries is,the more unfavorable to the expansion of China’s cultural products export volume,(2)Bilateral economic scales,geographical distance,cultural distance,exchange rate,and external shock have significant impact on the intensive margin.While bilateral economic scales,exchange rate and fixed trade cost have significant impact on the extensive margin.Based on these results,the paper puts forward four recommendations,including "enhance cultural identity,improve cultural innovation".In order to provide a reference for our country to enhance the cultural soft power and build a strong cultural power country.