Diversity Of Import Intermediate Products Sources And Exporters' Markups

In recent years,with changes in the external environment and the slowdown of the domestic economic growth,how to promote the transformation and upgrading of the economic structure and achieve high-quality development has become a matter of great concern.As an important part of achieving high-quality development,how to improve the competitiveness and influence of exporters has also been widely discussed.Based on previous literature,this paper studies the impact of diversity of import intermediate products sources on exporters' markups by using the Chinese industrial enterprises database,Chinese Custom database,and WTO Tariff download facility database from 2000 to 2007.Our paper shows that the increase in the diversity of import intermediate products sources has a significant positive effect on the increase of exporters' markups.Moreover,the effect of the diversity of import intermediate products sources is more significant on general trading exporters,foreign-own exporters,technology-intensive exporters,industries with lower market concentration,and exporters who produce differentiated product.Therefore,the policymakers should accelerate the process of trade liberalization,continue to reduce import tariffs,actively sign bilateral and multilateral trade agreements with other countries,and rationally use industrial policies to promote the upgrading of industrial structures and the improvement of exporters' competitiveness.