The Peer Effect In Firms' Exporting Decision

Since Chinese economic reform,the scale of trade has grown rapidly.However,there are huge differences in the scale of exports between different regions and industries.The imbalance in export quotas has further aggravated the gap in regional development.It is of great significance to discuss the factors affecting the export choice of firms for formulating corresponding policies to narrow the gap in regional development levels.First,this paper analyzes the possible mechanism of the peer effect in firms' exporting decision,when the peer firms choose to export,a company is stimulated by scale economy,technology spillover effects,competition effects,and reduction of export costs.And it also suffers from rising costs of scarcity factors and increased competition in export markets.On the basis of this mechanism,this paper further analyzes the heterogeneity of peer effect in firms' exporting decision from the perspective of following firms and leading firms.Then,this paper uses the matching data of the industrial firm database and the customs database from 2000 to 2006 to do the empirical test.Based on related research,this paper uses whether the firm starting export as the explained variable,and the number of export companies exporting to the same destination within the same industry as the core explanatory variables to empirically test the peer effect of corporate exports.The empirical results show that:(1)The peer effect in the export selection of Chinese firms is significantly positive;(2)From the perspective of following firms to test the heterogeneity of peer effects,it was found that larger companies,higher-productivity companies,non-state-owned firms,and mid-western regions have greater peer-to-peer effects;(3)From the perspective of leading firms,it is found that the peer effect caused by the export of large-scale firms and similarly-sized firms is greater.Finally,on the basis of theoretical and empirical results,this paper proposes relevant policy recommendations for better exerting peer effects to increase the scale of exports.On one hand,companies should strive to increase productivity,strengthen links with their peer companies,reduce export risks,and increase their competitiveness in the export market.On the other hand,local governments,especially local governments in the central and western regions should pay attention to the peer effect of export selection among firms in the region.Governments should attach importance to the export of large-scale firms,support existing export firms and encourage potential export firms to increase the number of export firms in the region.It can form a virtuous circle to increase the scale of regional exports and drive the development of the local economy.