An Empirical Analysis Of China's Environmental Products Industry's Export Experience On Export Market Expansion

Since China joined the WTO in 2001,the export trade volume of the low value-added labor-intensive products has increased rapidly driven by export advantages and export-oriented policy year by year.China's export quantum have maintained rapid growth over the past 30 years because of the reform and opening up policy.But continuous export prosperity does not mask its vulnerability to external demand shocks,which have been shown for more than a decade.In general,in China's foreign trade structure,product categories and trade objects are very rich,but the market structure is very unreasonable.China's export market is too focused on the United States,Europe,Japan and other markets,which are affected by the international financial crisis and frequent international trade friction.Also these countries are limited potential in a intensely competitive market,At the same time,the concentration of export markets tends to lead to deterioration of the terms of trade,income instability and impoverished growth and other phenomenon.With the economic globalization and regional economic integration,trade in environmental products has begun to attract more attention from the world.Export trade has risen year by year.However,after economic crisis,the growth rate of environmental products is nearly equal to zero in 2010,which is under zero in 2015.With the microscopic export structure of China's environmental products,the distribution in regions showed a significant imbalance.The export distribution of environmental products is mainly in the United States,Japan and Germany.This phenomenon prompted us to think about a question:If a high degree of concentration on China's environmental products export market has led to the export growth stagnant?Then,based on the "pioneering" and "choice" of enterprises in the new market,this paper systematically studies the impact of export experience on the entry of new markets for China's environmental products.Based on a "product-market-year" three-dimensional observation samples which contains the 2003-2015 China Customs HS-6 product data,we make a empirical test to obtain the regression results by the conditional probit model.Specifically,focus on the following three questions:(1)whether the export experience will affect the product into the new market;(2)whether the export experience of a similar market has a different impact on the entry of new markets for the product;(3)For different standard destination countries,whether the export experience of a similar market has a different impact on new markets.With these three questions,firstly,classify related literature on the subject from three aspects:export market diversification,export market expansion,export market choice.At present,the domestic and foreign studies about the expansion of the export market is mainly concentrated on the enterprise level,few on the product level.The literature shows that market expansion is a source of export growth and market expansion contribute more to export growth than quantitative expansion and product expansion.Second,in the empirical research part,the theoretical model of Wang and Zhang is taken as the mathematical model of this paper.After considering the purpose of the study and the available data,this paper chosen 2003-2015 China Customs database--the enterprise-export market micro-product data--for the calculation and analysis.Use conditional probit model to study problems of opening up new export market for China's environmental products,and seek diversified and effective measures of China's export market.The results shows that the previous export experience of the product has a significant impact on its entry into the new target market.The previous average export duration will positively affect the probability of the product entering the new market.If the average export duration increased every year,the probability of entering the new market will raise about 0.219 times.This suggests that increasing the duration of export trade relations can contribute to the long-term growth of export,which can be achieved by deepening the existing trade relations.More importantly,the longer the duration that the product continues to export to the new market,the greater the export leaming effect will be,the greater the likelihood that the product will enter the new market And there is a certain path dependence,this space selection model can not only along with the export market adjacent to the old export market on geography,can also follow the export market similar to the old export market on culture,you can also choose the export market similar to the old market on income.Then,on the basis of the basic regression results,the target countries are subdivided and tested according to the income level standard and continent standards.the statistics shows that distance proximity and cultural similarity are particularly significant for the promotion of new market entry in developing countries;for low and middle income countries,the distance proximity and cultural similarity to new market entry is greater than income similarity.It can be seen from the above that when exporting enterprises are tapping the maiket potential of developing countries,geographical proximity and culftural similarity will help them develop new target markets based on previous export experience.Finally,based on the theoretical analysis and empirical analysis,given the actual situation ofChina's environmental products,this paper puts forward some suggestions from the three aspects:govemment policy and enterprise strategy,in oeder to accelerate the formation of a reasonable trade network.