Income Shock,product Quality And Export Performance Empirical Evidence From The Financial Crisis

The 2008 financial crisis has swept the whole world,seriously affected the world's economy and the export trade.What differences will have in terms of the export performance of different product quality?In fact,according to the theory of Fajgelbaum et al(2011),the consumer's demand structure of the product has changed gradually under the condition of the external reverse income impact,and the residents ' consumption of high quality products has begun to transfer to the low quality products.Impacts of consumers on the consumption volume of products gradually declined,the quality of products also fell.As demand across national borders,the effect remains that exports of high-quality products move higher than the export movements of low-quality products under reverse revenue shocks.The existing research on the relationship between international trade and financial crisis has been quite large,and most of the literatures have probed into the influence of financial crisis on the export of products from the angle of mechanism and reason,while few scholars have studied the changes of export trade in the period of financial crisis from the angle of product quality.This paper,starting from the new entry point of product quality,systematically studies the special change course of export trade during the financial crisis.This paper firstly uses the demand information regression method to calculate the product level quality,describing the financial crisis period by the quality of the product export performance differentiation of the typical facts based on the 2000-2009 China Customs import and export trade database.Then the paper examines the heterogeneity effect of income impact on product export performance by double difference method based on the natural experimental framework of financial crisis.The results is that the impact of the financial crisis on the export of high-quality products is significantly stronger than the low quality products,which placebo tests and robustness tests have demonstrated the reliability of empirical results.Also,the different trade modes,enterprise scales and enterprise types lead to obvious different export performances in the quality dimension:The general trade is more serious in the export of high quality products than that of processing trade,in which we can find similar results comparing small-scale enterprises,other types of enterprises and private enterprises.Further,when using income,expenditure,unemployment and other indicators to quantify the impact of income,the impact of export-oriented countries,the performance of export products in low and high quality in China is increasingly obvious.The conclusion of this paper provides some enlightenment for the transformation of economic model and adjustment of foreign trade pattern in the process of product quality upgrading in China.