The Impact Of Trade Liberalization Of Import Intermediate Inputs On Export Relationships

Since China’s accession to the WTO,China’s average tariff has dropped significantly.Tariff policies have also undergone significant changes.The reduction and exemption of tariffs on intermediate products such as key components,raw materials and important energy resources is also commonplace in China.How does the trade liberalization of intermediates affect the export relations of enterprises measured by "enterprise-destination" pair?Is it conducive to the Chinese enterprises to participate more actively in exports,and export products to more destinations in order to achieve the diversification of the export market?If the liberalization of trade in intermediates does indeed promote the growth of the export relations of enterprises and at the same time reduce the exit of the export relations of enterprises,what is the possible mechanism behind this existence?Therefore based on the database of Chinese manufacturing enterprises and customs databases from 2000 to 2006,this paper studies the impact of the trade liberalization of intermediate goods on the export relations of manufacturing enterprises in China.Research shows that the reduction of tariffs on intermediate products promotes the entry of export relations,and inhibits the exit of export relations.Further empirical research finds that,the liberalization of trade in intermediary products promotes the establishment of new export relations and reduces the exit of existing export relations,mainly through three ways:increasing types of imports,improving the quality of imported intermediates and lowering the prices of imported intermediates.The trade in intermediates,the impact of liberalization on the export relations of enterprises varies with the productivity level of enterprises,the share of processing trade and the nature of enterprises.Specifically,the higher level of labor productivity,the higher share of processing trade and the foreign-funded enterprises,and the stronger the impact on the entry and exit of export relations.The impact of the liberalization of trade in intermediary goods also varies with the factor intensities and competitive tension of different industries,as manifested in the capital or technology-intensive industries,competitive tension.The smaller the industry is,the lower the import tariffs on intermediate imports and exports of exports to enter and exit the stronger will be.Therefore,the government should continue to implement the tariff policy of reducing the import of intermediate products in our country,and extensively reduce or exempt the import tariffs on the intermediate materials,which is of great significance for promoting the development of the export trade of our enterprises and enhancing the international competitiveness.Help enterprises to establish more export relations,expand existing market share and make enterprises more competitive and influential in the international market.