A Study On The China's Enterprise Heterogeneity Effect On Export Chioce

With the rapid development of the word economy,economies of different countries depend more and more on each other,which makes international trade theory get more and more deep insight into the real world.Through the study of internationalization,we find that firm heterogeneity directly affects the trade behavior of a country,especially for firms that export.At the end of 20th century,the scholars represented by Melitz abandon the traditional study object – industrial,focus on a more micro level – firms and propose “Heterogeneous firm trade theory”.The theory takes productivity as the expression of heterogeneity,and aims at analyzing how firms select their internationalization path and how to organize their global production.After the opening and reform policy,China has got great progress from a small trade entity to the most powerful export country and the second biggest economy.Academic research of new-new theory often attributes firm heterogeneity to productivity differences.Institutional factors are neglected when consider the export of developing countries.Chinese scholars' study shows that there is an “export-productivity” paradox in almost all industries in China,which indicates that enterprises with lower productivity will chose export.Therefore,this paper argues that it is not a single heterogeneity but a multiply heterogeneities that determines whether to export.In this paper,the multiply heterogeneities cover enterprise scale,the human capital,profitability,productivity,location and ownership.The empirical study of this paper will use the Chinese industrial enterprise database(1998-2007).The database collects data of industrial enterprise,whose annual sales is more than 5 million Yuan.Thus,it contains a huge amount of data,covering 90% of manufacturing companies.And according to the situation of China's key export industries,select six representative export industries to make the empirical test.It turned out that,the phenomenon of “export-productivity paradox” generally appears in these six industries,which means that only the productivity differences of enterprises can not fully effect the export choice.The following empirical study shows that enterprise scale,profitability,ownership,location and the human capital also has a significant impact on enterprise export choice.Multi-ply heterogeneities have a better explanatory than a single heterogeneity of productivity on the export choice of China's enterprises.