The Characteristics Of Destinations And The Agglomeration Of Exporters

The agglomeration of the exporters is a common economic phenomenon.Most of the existing theories investigated and analyzed this phenomenon from the production point of view,such as technology spillovers,information sharing,etc.This paper attempts to examine the agglomeration of exporters from the perspective of demand,that is,the influence of the destination market's characteristics on the exporter's location choice,so as to further reveal the mechanism that affect the spatial choice of exporters.Based on the Krautheim(2012)model,this paper constructs the export decision model of the heterogeneous enterprise,which brings the target market size and trade cost under same framework to analyze.This paper discusses the influencing factors of the relevance of destination market's characteristics on the export choice.The model deduces the following propositions:the weakening of export barriers and the strengthening in export spillover effects both contribute to the reduction of the agglomeration of exporters and the promotion of corporate exports' scale.Then,this paper makes use of the data of China's Import and export customs' database and the relevant data of destination market to do the empirical test.Our main study focuses on the transmission mechanism of the factors such as economic and political environment,the language environment and the distance of the destination country to the the agglomeration of the exporters.The empirical results show that the higher cost to enter foreign markets,the more concentration of exporters.In addition,the magnitude of the influence of the characteristics of the destination country on the degree of exporters' agglomeration is different between the industries,and the export spillover effect is more obvious in the industry with higher exporters' agglomeration.This result confirms the existence of the export spillover eiffect from the other side.Finally,based on the theoretical and empirical results,this paper provides some relevant policy suggestions for China's optimization for industrial layout and export trade structure.