China's Low Export Markups Puzzle: Competition Effect and Selection Effect
|
摘要
Based on China's industrial enterprises-customs matched data, this paper utilizes two-tier stochastic frontier analysis method to estimate and verify the extent to which selection effect and competition effect influence exporting firms' markup. Our findings suggest that the interaction between selection effect and competition effect ultimately causes actual firm markup to be higher than the baseline markup by 7.11%. Exporting firms' actual markup is higher than the baseline markup by different degrees. In terms of the decomposition of selection effect, TFP explains for 28.05% of selection effect, and nonproductivity factors explain for the rest 71.95%. By controlling for the type of firms' export,the export-productivity paradox only exists for processing trade firms, which shows that with increasing trade facilitation, the policy incentives to encourage firms to export are major contributors to the low export markups.
Based on China's industrial enterprises-customs matched data, this paper utilizes two-tier stochastic frontier analysis method to estimate and verify the extent to which selection effect and competition effect influence exporting firms' markup. Our findings suggest that the interaction between selection effect and competition effect ultimately causes actual firm markup to be higher than the baseline markup by 7.11%. Exporting firms' actual markup is higher than the baseline markup by different degrees. In terms of the decomposition of selection effect, TFP explains for 28.05% of selection effect, and nonproductivity factors explain for the rest 71.95%. By controlling for the type of firms' export,the export-productivity paradox only exists for processing trade firms, which shows that with increasing trade facilitation, the policy incentives to encourage firms to export are major contributors to the low export markups.
Based on China's industrial enterprises-customs matched data, this paper utilizes two-tier stochastic frontier analysis method to estimate and verify the extent to which selection effect and competition effect influence exporting firms' markup. Our findings suggest that the interaction between selection effect and competition effect ultimately causes actual firm markup to be higher than the baseline markup by 7.11%. Exporting firms' actual markup is higher than the baseline markup by different degrees. In terms of the decomposition of selection effect, TFP explains for 28.05% of selection effect, and nonproductivity factors explain for the rest 71.95%. By controlling for the type of firms' export,the export-productivity paradox only exists for processing trade firms, which shows that with increasing trade facilitation, the policy incentives to encourage firms to export are major contributors to the low export markups.
引文
[1]Ackerberg,D.A.,Caves K.,and Frazer G.2015.“Identification Properties of Recent Production Function Estimators.”Econometrica,83(6):2411-2451.
[2]Atkin,D.,Khandelwal A.K.,and Osman A.2017.“Exporting and Firm Performance:Evidence from a Randomized Experiment.”Econometrica,132(2):551-615.
[3]Badinger,H.2007.“Has the EU’s Single Market Programme Fostered Competition?Testing for a Decrease in Mark-up Ratios in EU Industries.”Oxford Bulletin of Economics&Statistics,69(4):497-519.
[4]Bellone,F.,Musso P.,Nesta L.,and Warzynski F.2016.“International Trade and Firm-level Markups when Location and Quality Matter.”Journal of Economic Geography,16(1):67-91.
[5]Bernard,A.B.,and Jensen J.B.1999.“Exceptional Exporter Performance:Cause,Effect,or Both?”Journal of International Economics,47(1):1-25.
[6]Bernard,A.B.,Eaton J.,Jensen J.B.,and Kortum S.2003.“Plants and Productivity in International Trade.”American Economic Review,93(4):1268-1290.
[7]Chen,N.,Imbs J.,and Scott A.2010.“The dynamics of Trade and Competition.”Journal of International Economics,77(1):50-62.
[8]Chen,Wen,and Zhaoji Sun.2016.“Labor Cost and Export Margins of Firm.”the Journal of Quantitative&Technical Economics,No.9.
[9]Crozet,M.,Head K.,and Mayer T.2009.“Quality Sorting and Trade:Firm-level Evidence for French Wine.”CEPR discussion papers,79(2):609-644.
[10]Dai,Ni,Yu Miaojie,and Madhura Maitra.2014.“The Productivity Puzzle of Chinese Exporters:The Role of Processing Trade.”China Economic Quarterly,No.1.
[11]De Loecker,J.2007.“Do Exports Generate Higher Productivity?Evidence from Slovenia.”Journal of International Economics,73(1):69-98.
[12]De Loecker,J.,and Goldberg P.K.2014.“Firm Performance in a Global Market.”American Review of Economics,6:201-227.
[13]De Loecker,J.,and Warzynski F.2012.“Markups and Firm-Level Export Status.”The American Economic Review,102(6):2437-2471.
[14]De Loecker,J.,Goldberg,P.K.,Khandelwal,A.K.and Pavcnik,N.2016.“Prices,Markups,and Trade Reform”Econometrica,84(2):445-510.
[15]Domowitz,I.,Hubbard,R.G.and Petersen,B.C.1988.“Market Structure and Cyclical Fluctuations in U.S.Manufacturing.”The Review of Economics and Statistics,70(1):55-66.
[16]Edmond,C.,Midrigan,V.and Xu,D.Y.2015.“Competition,Markups,and the Gains from International Trade.”American Economic Review,105(10):3183-3221.
[17]Feenstra,R.C.2010.“Measuring the Gains from Trade under Monopolistic Competition.”Canadian Journal of Economics,43(1):1-28.
[18]Gao,Yunsheng,Zheng Lekai,and Zhangjiao Yang.2017.“Heterogeneity of Product Quality and Export Markup.”Statistical Research Journal,No.9.
[19]Huang,Xianhai,Zhujun Zhu,and Xueyin Song.2016a.“Low Markup Puzzle of China’s Intermediate Input Importers.”Management World,No.7.
[20]--.2016b.“Low Markup Trap of China’s Exporting Firms.”the Journal of World Economy,No.3.
[21]Kugler,M.,and Verhoogen,E.2012.“Prices,Plant Size,and Product Quality.”Review of Economic Studies,79(1):307-339.
[22]Kumbhakar S.C.,and Parmeter C.F.2009.“The Effects of Match Uncertainty and Bargaining on Labor Market Outcomes:Evidence from Firm and Worker Specific Estimates.”Journal of Productivity Analysis,31(1):1-14.
[23]Li,Chunding.2015.“Literature Survey on the Export-Productivity Paradox of Chinese Firms.”the Journal of World Economy,No.5.
[24]Liu,Qiren,and Jianzhong Huang.2015.“Export Probability,Learning by Exporting and Low Markup Trap.”Economic Research Journal,No.12.
[25]Lu,Y.,and L.Yu.2015.“Trade Liberalization and Markup Dispersion:Evidence from China’s WTO Accession.”American Economic Journal:Applied Economics,7(4):221-253.
[26]Martin,J.2012.“Markups,Quality,and Transport Costs.”European Economic Review,56(4):777-791.
[27]Melitz,M.J.2003.“The Impact of Trade on Inrea-Industry Reallocations and Aggregate Industry Productivity.”Econometrica,71(6):1695-1725.
[28]Melitz,M.J.,and Ottaviano G.I.P.2008.“Market Size,Trade,and Productivity.”Review of Economic Studies,75(1):295-316.
[29]Piveteau,P.,and Smagghue G.2013.A New Method for Quality Estimation Using Trade Data an Application to French Firms.Mimeo,Columbia University.
[30]Qian,Xuefeng,and Dongmei Fan.2015.“Price-Cost Markup and International Trade:A Survey.”Economic Research Journal,No.2.
[31]Qian,Xuefeng,Dongmei Fan,and Hanmin Huang.2016.“Import Competition and the Cost Markup of China’s Manufacturers.”the Journal of World Economy,No.3.
[32]Qian,Xuefeng,Ying Pan,and Hantao Mao.2015.“Export Tax Rebate,Corporate Cost Markup and Resource Misallocation.”the Journal of World Economy,No.8.
[33]Qian,Xufeng,Jurong Huang,Yunhu Huang,and Sheng Wang.2011.“Export and the Productivity of China’s Industrial Enterprises:Self-Selection Effect or Learning by Exporting Effect?.”the Journal of Quantitative&Technical Economics,No.2.
[34]Ren,Shuming,and Jing Zhang.2013.“Subsidy,Rent Seeking Cost and Markup:An Empirical Study Based on China’s Equipment Manufacturing Firms.”Management World,No.10.
[35]Rizov,M.,Oskam,A.,and Walsh,P.2012.“Is There a Limit to Agglomeration?Evidence from Productivity of Dutch Firms.”Regional Science&Urban Economics,42(4):595-606.
[36]Rosenbaum,P.R.,and Rubin D.B.1983.“The Central Role of the Propesity Score in Observational Studies for Causal Effect.”Biometrika,70(1):41-55.
[37]Sheng,Dan,and Yi Lu.2016.“Will Export Increased the Collective Wage Bargaining Power of Workers.”the Journal of World Economy,No.5.
[38]Sheng,Dan,and Yongjin Wang.2012.“Low-Price Export Puzzle of Chinese Firms:from a Firm Markup Perspective.”Management World,No.5.
[39]Song,Chao,and Yiqing Xie.2017.“Renminbi Exchange Rates Effect on the Export of Chinese Firms:Processing Trade and General Trade.”the Journal of World Economy,No.8.
[40]Tybout,J.R.2003.“Plant and Firm-Level Evidence on‘New’Trade Theories.”Handbook of International Trade,1:388-415.
[41]Wang,Jieyu,Qi Guo,Yi Zhou,and Canfei He.2013.“Effect of Market Segmentation and China’s Manufacturing Growth:Regional and Industry Differences,Progress in Geography,No.11.
[42]Yang,Rudai,and Yan Li.2013.“Study on Geographic Location and Price Heterogeneity of Firm Export Products.”Management World,No.7.
[43]Ye,Ninghua,Qun Bao,and Min Shao.2014.“Special Spatial Agglomeration,Market Crowding and Overexpression of China’s Exporting Firms.”Management World,No.1.
[44]Yu,M.J.2015.“Processing Trade,Tariff Reductions and Firm Productivity:Evidence from Chinese Firms.”Economic Journal,125(6):943-988.
[45]Zhang,Jie,and Wenping Zheng.2015.“Effects of Government Subsidy on the Dual Margin of Chinese Exports.”the Journal of World Economy,No.3.
[46]Zhang,Jie,Fuxin Di,and Xiaoyan Zhou.2015.“Government Subsidy,Market Competition and Export Quality.”the Journal of Quantitative&Technical Economics,No.4.
[47]Zhang,Minzhi,and Ying Tie.2016.“Study on the Effect of Rising Wage on the Quality of Chinese Exports.”Economic Perspectives,No.9.
[48]Zhu,Shujin,and Penghui Zhang.2015.“Do Exporting Firms Boast Higher Price:Evidence from China’s Manufacturing Industry.”the Journal of World Economy,No.4.
[49]Zhu,Zhujun,Xianhai Huang,Xueying Song,Xinyue Hu,and Huang Wang.2017.“Rising Labor Cost,Forced Innovation and the Market Rate of Chinese Firms.”the Journal of World Economy,No.8.
1 Aside from the positive influence of the selection effect, the increase of firm markup may also be ascribed to the learning by exporting effect of export(De Loecker, 2007; Qian, et al., 2011)and movement of the production possibility frontier(De Loecker and Goldberg, 2014). According to Atkin et al.(2017), this paper controls for the quality of firm export products and thus controls for the contributions of the two effects to firm markup rate.
2 Through the regression coefficient result of Table 3, this value is used to analyze the specific effect on export markup rate, the magnitude of which needs to be further measured according to the expected remaining percentage.
[2]Atkin,D.,Khandelwal A.K.,and Osman A.2017.“Exporting and Firm Performance:Evidence from a Randomized Experiment.”Econometrica,132(2):551-615.
[3]Badinger,H.2007.“Has the EU’s Single Market Programme Fostered Competition?Testing for a Decrease in Mark-up Ratios in EU Industries.”Oxford Bulletin of Economics&Statistics,69(4):497-519.
[4]Bellone,F.,Musso P.,Nesta L.,and Warzynski F.2016.“International Trade and Firm-level Markups when Location and Quality Matter.”Journal of Economic Geography,16(1):67-91.
[5]Bernard,A.B.,and Jensen J.B.1999.“Exceptional Exporter Performance:Cause,Effect,or Both?”Journal of International Economics,47(1):1-25.
[6]Bernard,A.B.,Eaton J.,Jensen J.B.,and Kortum S.2003.“Plants and Productivity in International Trade.”American Economic Review,93(4):1268-1290.
[7]Chen,N.,Imbs J.,and Scott A.2010.“The dynamics of Trade and Competition.”Journal of International Economics,77(1):50-62.
[8]Chen,Wen,and Zhaoji Sun.2016.“Labor Cost and Export Margins of Firm.”the Journal of Quantitative&Technical Economics,No.9.
[9]Crozet,M.,Head K.,and Mayer T.2009.“Quality Sorting and Trade:Firm-level Evidence for French Wine.”CEPR discussion papers,79(2):609-644.
[10]Dai,Ni,Yu Miaojie,and Madhura Maitra.2014.“The Productivity Puzzle of Chinese Exporters:The Role of Processing Trade.”China Economic Quarterly,No.1.
[11]De Loecker,J.2007.“Do Exports Generate Higher Productivity?Evidence from Slovenia.”Journal of International Economics,73(1):69-98.
[12]De Loecker,J.,and Goldberg P.K.2014.“Firm Performance in a Global Market.”American Review of Economics,6:201-227.
[13]De Loecker,J.,and Warzynski F.2012.“Markups and Firm-Level Export Status.”The American Economic Review,102(6):2437-2471.
[14]De Loecker,J.,Goldberg,P.K.,Khandelwal,A.K.and Pavcnik,N.2016.“Prices,Markups,and Trade Reform”Econometrica,84(2):445-510.
[15]Domowitz,I.,Hubbard,R.G.and Petersen,B.C.1988.“Market Structure and Cyclical Fluctuations in U.S.Manufacturing.”The Review of Economics and Statistics,70(1):55-66.
[16]Edmond,C.,Midrigan,V.and Xu,D.Y.2015.“Competition,Markups,and the Gains from International Trade.”American Economic Review,105(10):3183-3221.
[17]Feenstra,R.C.2010.“Measuring the Gains from Trade under Monopolistic Competition.”Canadian Journal of Economics,43(1):1-28.
[18]Gao,Yunsheng,Zheng Lekai,and Zhangjiao Yang.2017.“Heterogeneity of Product Quality and Export Markup.”Statistical Research Journal,No.9.
[19]Huang,Xianhai,Zhujun Zhu,and Xueyin Song.2016a.“Low Markup Puzzle of China’s Intermediate Input Importers.”Management World,No.7.
[20]--.2016b.“Low Markup Trap of China’s Exporting Firms.”the Journal of World Economy,No.3.
[21]Kugler,M.,and Verhoogen,E.2012.“Prices,Plant Size,and Product Quality.”Review of Economic Studies,79(1):307-339.
[22]Kumbhakar S.C.,and Parmeter C.F.2009.“The Effects of Match Uncertainty and Bargaining on Labor Market Outcomes:Evidence from Firm and Worker Specific Estimates.”Journal of Productivity Analysis,31(1):1-14.
[23]Li,Chunding.2015.“Literature Survey on the Export-Productivity Paradox of Chinese Firms.”the Journal of World Economy,No.5.
[24]Liu,Qiren,and Jianzhong Huang.2015.“Export Probability,Learning by Exporting and Low Markup Trap.”Economic Research Journal,No.12.
[25]Lu,Y.,and L.Yu.2015.“Trade Liberalization and Markup Dispersion:Evidence from China’s WTO Accession.”American Economic Journal:Applied Economics,7(4):221-253.
[26]Martin,J.2012.“Markups,Quality,and Transport Costs.”European Economic Review,56(4):777-791.
[27]Melitz,M.J.2003.“The Impact of Trade on Inrea-Industry Reallocations and Aggregate Industry Productivity.”Econometrica,71(6):1695-1725.
[28]Melitz,M.J.,and Ottaviano G.I.P.2008.“Market Size,Trade,and Productivity.”Review of Economic Studies,75(1):295-316.
[29]Piveteau,P.,and Smagghue G.2013.A New Method for Quality Estimation Using Trade Data an Application to French Firms.Mimeo,Columbia University.
[30]Qian,Xuefeng,and Dongmei Fan.2015.“Price-Cost Markup and International Trade:A Survey.”Economic Research Journal,No.2.
[31]Qian,Xuefeng,Dongmei Fan,and Hanmin Huang.2016.“Import Competition and the Cost Markup of China’s Manufacturers.”the Journal of World Economy,No.3.
[32]Qian,Xuefeng,Ying Pan,and Hantao Mao.2015.“Export Tax Rebate,Corporate Cost Markup and Resource Misallocation.”the Journal of World Economy,No.8.
[33]Qian,Xufeng,Jurong Huang,Yunhu Huang,and Sheng Wang.2011.“Export and the Productivity of China’s Industrial Enterprises:Self-Selection Effect or Learning by Exporting Effect?.”the Journal of Quantitative&Technical Economics,No.2.
[34]Ren,Shuming,and Jing Zhang.2013.“Subsidy,Rent Seeking Cost and Markup:An Empirical Study Based on China’s Equipment Manufacturing Firms.”Management World,No.10.
[35]Rizov,M.,Oskam,A.,and Walsh,P.2012.“Is There a Limit to Agglomeration?Evidence from Productivity of Dutch Firms.”Regional Science&Urban Economics,42(4):595-606.
[36]Rosenbaum,P.R.,and Rubin D.B.1983.“The Central Role of the Propesity Score in Observational Studies for Causal Effect.”Biometrika,70(1):41-55.
[37]Sheng,Dan,and Yi Lu.2016.“Will Export Increased the Collective Wage Bargaining Power of Workers.”the Journal of World Economy,No.5.
[38]Sheng,Dan,and Yongjin Wang.2012.“Low-Price Export Puzzle of Chinese Firms:from a Firm Markup Perspective.”Management World,No.5.
[39]Song,Chao,and Yiqing Xie.2017.“Renminbi Exchange Rates Effect on the Export of Chinese Firms:Processing Trade and General Trade.”the Journal of World Economy,No.8.
[40]Tybout,J.R.2003.“Plant and Firm-Level Evidence on‘New’Trade Theories.”Handbook of International Trade,1:388-415.
[41]Wang,Jieyu,Qi Guo,Yi Zhou,and Canfei He.2013.“Effect of Market Segmentation and China’s Manufacturing Growth:Regional and Industry Differences,Progress in Geography,No.11.
[42]Yang,Rudai,and Yan Li.2013.“Study on Geographic Location and Price Heterogeneity of Firm Export Products.”Management World,No.7.
[43]Ye,Ninghua,Qun Bao,and Min Shao.2014.“Special Spatial Agglomeration,Market Crowding and Overexpression of China’s Exporting Firms.”Management World,No.1.
[44]Yu,M.J.2015.“Processing Trade,Tariff Reductions and Firm Productivity:Evidence from Chinese Firms.”Economic Journal,125(6):943-988.
[45]Zhang,Jie,and Wenping Zheng.2015.“Effects of Government Subsidy on the Dual Margin of Chinese Exports.”the Journal of World Economy,No.3.
[46]Zhang,Jie,Fuxin Di,and Xiaoyan Zhou.2015.“Government Subsidy,Market Competition and Export Quality.”the Journal of Quantitative&Technical Economics,No.4.
[47]Zhang,Minzhi,and Ying Tie.2016.“Study on the Effect of Rising Wage on the Quality of Chinese Exports.”Economic Perspectives,No.9.
[48]Zhu,Shujin,and Penghui Zhang.2015.“Do Exporting Firms Boast Higher Price:Evidence from China’s Manufacturing Industry.”the Journal of World Economy,No.4.
[49]Zhu,Zhujun,Xianhai Huang,Xueying Song,Xinyue Hu,and Huang Wang.2017.“Rising Labor Cost,Forced Innovation and the Market Rate of Chinese Firms.”the Journal of World Economy,No.8.
1 Aside from the positive influence of the selection effect, the increase of firm markup may also be ascribed to the learning by exporting effect of export(De Loecker, 2007; Qian, et al., 2011)and movement of the production possibility frontier(De Loecker and Goldberg, 2014). According to Atkin et al.(2017), this paper controls for the quality of firm export products and thus controls for the contributions of the two effects to firm markup rate.
2 Through the regression coefficient result of Table 3, this value is used to analyze the specific effect on export markup rate, the magnitude of which needs to be further measured according to the expected remaining percentage.