Research On The Effect Of Industrial Market Structure On Export Sophistication

Under the international division of labor system driven by developed countries.Chinese firms,due to its lack of invest in capital and technology,are often on a sticky wicket in the whole trading schemes.Goods provided by Chinese firms are often at the lower side of the global value chain,and naturally,the export sophistication on Chinese goods is pretty low compared to those developed countries.Current paper devise researches on various views to analyze the factors of export sophistication,but mainly on macro point like factor endowment、financial development and FDI etc.Fairly few of them detect the reason in view of industry—the medium angle.Furthermore,as for econometric analysis,current paper,mainly launch their research on national or regional level.Few of them detect the effect on industrial level.This paper mainly explore the effect of industrial market structure on export sophistication.It adopts the mathod in Rodric(2006)[1]and Hausman(2007)[2]to calculate the export sophistication of 31 Chinese segmented industries according to the 3rd edition of GB_T4754-2011 as a measurement of export sophistication.By means of matching the Yearly data of 2001 to 2009 from Chinese Industry Business Performance Database and segmented ones from the year book of China,situation analysis is also made to show their relationshipThe result of situation analysis shows that,on the whole,the market concentration of Chinese industries was low was descending in year 2001-2009.And the export sophistication was increasing during the same period.The variation tendency of these two curves inclines correlativity in some certain degree.As a result,a proper suspect is emerged on whether the degree of competition in industrial market structure has an effect on the sophistication of export goods.The framework of Heterogeneous firm trading theory offers theoretical support to explain the effect of industrial market structure on Chinese export sophistication.This paper added industrial market structre variable in the classical Meltize(2003)[3]model to domechanism analysis.The econometric result proves that the market structure measured by market concentration has a negative effect on export sophistication;meanwhile,human capital、research and development input and FDI have positive effect on it.On the basia of econometric analysis,this paper raises suggestions in two aspects:increase the degree of industrial competition and decrease the degree of monopoly in industries in order to increase the export sophistication of Chinese firms and twisting the dilemma of low-end lock.