Research On The Influence Of Financing Constraints On The Markup Of Export Enterprises

Since the reform and opening,China's foreign trade has developed rapidly and the export of enterprises has become an important engine of economic growth.However,while gaining huge trade gains,a series of problems have also emerged.Among them,the more prominent is that many enterprises export prices lower than the domestic price.On the one hand,the export price is too low,which cause we have reduced so much trade gains,on the other hand also reduces the domestic consumer purchasing power and welfare levels.In addition,the export price is too low also made the profits of export enterprises and worker wages lower and limiting domestic demand growth.To this end,this issue has also been widely concerned by many government officials as well as experts and scholars besides that,it has become an issue to be studied and solved urgently.This paper attempts to study this issue from the perspective of financing constraints:As the capital market is not perfect,leading to outstanding corporate financing constraints,and financing constraints will affect the pricing of the enterprise?If the financing constraints will have an impact on the pricing of the enterprise,then what is the method and the ways in which it will affect it?This is the problem to be solved in this paper.This paper establishes a dynamic pricing model of the impact of financing constraints on the enterprise cost under the export trade environment,and theoretically illustrates the impact of financing constraints on the markup of export enterprises.Theoretical studies show that due to the incomplete capital market,enterprises face financing constraints when they export their products.When the financing constraints faced by enterprises are greater,the more intense the price competition,the smaller the enterprise's cost increase.Then,using the data of Chinese manufacturing firms from 2000 to 2007,we calculate the cost plus costs of each exporting firm and the financing constraints they face.Further,the econometric model is used to empirically study the impact of financing constraints on the markup of export enterprises.Empirical evidence also shows that the financing constraints have a negative impact on the markup of export enterprises.On this basis,we classify the types of enterprise ownership and market competition.Empirical results show that under the influence of financing constraints,private-owned enterprises have the most obvious price-cutting effects,followed by foreign-funded enterprises and state-owned enterprises.Judging from the degree of market competition,the more intense the competition,the more significant the impact of financing constraints on the price-cutting of enterprises.