A Study On The Impact Of Domestic Trade Costs On The Enterprise Export Mode

In the process of China’s open economy development,the export mode of enterprises has been concerned.Early researches mainly focused on the international market,including the influence of fixed cost,transportation cost,trade policy,trade distance,tariff and other factors on enterprises’ export mode.Domestic trade cost is also an important factor that cannot be ignored when studying the export pattern of enterprises.In the field of trade,some scholars begin to pay attention to the impact of domestic trade costs on export trade.These studies mainly focus on the trade cost,export mode and the influence of the former on the latter,which can provide useful inspiration for the study of the relationship between trade cost and export mode.However,there are still some deficiencies in the existing literature.First,most of the research on domestic trade costs focuses on a specific aspect,and has not yet formed a systematic and comprehensive theoretical system.Existing literatures mainly focus on the specific manifestations of domestic trade cost,such as distance,infrastructure construction and transportation cost,and regard them as the substitution variable of overall trade cost,which is not comprehensive and systematic enough.Second,the existing literature on domestic factors affecting export mode tends to focus on the impact of a certain factor on the export mode,which is not enough to find the impact of domestic trade costs on a country’s export mode.Most literatures focus on the impact of productivity,subsidy policy and other factors on export mode.Existing literatures touch on the impact of domestic transportation cost,information cost,system cost and other factors on export mode,but there is still a lack of systematic research on the impact of domestic trade cost on a country’s export mode.Based on Cosar and Fajgelbaum(2016)to build dual economic framework,this paper discusses the influence mechanism of trade costs for domestic enterprises export model,and puts forward two to test hypotheses:(1)Assuming that other conditions unchanged,domestic trade costs fell on the one hand is advantageous to the enterprise export model of sustainability,can stimulate the export enterprises to carry out foreign trade at the same time,improve the export model enterprise become a new export model and the probability of discontinuous export model.(2)Assuming other conditions remain unchanged,there are differences in the direction and degree of the impact of domestic trade cost reduction on the export pattern of coastal and inland regions.For coastal areas,the promotion effect of domestic trade cost reduction on enterprise export mode is continuous export mode,new export mode and discontinuous export mode in order from large to small.For inland regions,the promotion effect of domestic trade cost reduction on enterprise export mode is new export mode,continuous export mode and discontinuous export mode in order from large to small.On the basis of theoretical analysis,this paper adopts the price index method to measure the domestic trade cost of China with the commodity price index of 29 provinces(cities)from 2000 to 2017,and evaluates it from its change trend and regional characteristics.The calculation results show that the domestic trade costs generally show a downward trend,indicating that the level of domestic marketization has been improved.From the comparison between regions,it can be seen that the level of domestic trade costs has nothing to do with the level of regional economic development.On the whole,the cost of domestic trade in both coastal areas and inland areas is decreasing.However,the cost of domestic trade in coastal areas has decreased much more than that in inland areas,and the average cost of domestic trade in coastal areas is more sensitive to economic fluctuations.Then,using the polynomial selection model and the data from 2000-2007 in the database of Chinese industrial enterprises,the relationship between domestic trade costs and enterprise export patterns is investigated.The empirical results show that: first,the domestic trade cost has an important impact on enterprises’ choice of export mode.Second,different export modes have different degrees of response to changes in domestic trade costs.The impact of domestic trade costs on enterprises’ export modes is successively continuous export mode,new export mode and discontinuous export mode.Third,for different regions,the impact of domestic trade costs are not the same.In the coastal samples,the decrease of domestic trade cost has the greatest promotion effect on the sustained export mode of coastal areas,while the new export mode and discontinuous export mode decrease successively.In the inland samples,the reduction of domestic trade costs has the largest promotion effect on the new export model,followed by the continuous export model,and the smallest promotion effect on the discontinuous export model.The above empirical results confirm the two hypotheses proposed in the theoretical part.In order to further improve the export mode of Chinese enterprises from the perspective of domestic trade costs,improve the export sustainability of enterprises,and promote the development of new export mode and discontinuous export mode,the following policies can be adopted.First,increase investment in transportation infrastructure,reduce spatial distance constraints.Second,reduce local protectionism and improve the level of market integration.Third,reduce the ratio of highway tolls and improve the efficiency of highway transportation.Fourth,improve the level of opening up to the outside world,but forced domestic regional economic reform.