Product Market Competition and Enterprise Export Behavior: Empirical evidence from the China Industry Business Performance Database
2020
Based on panel data of China Industry Business Performance Database, this paper uses the fixed effect model and the Logit model to verify the impact of market competition on export behavior of enterprises. Through research, it is found that fierce market competition will lead to a decrease in market share of the enterprises within the market and a decline in profit margins, resulting in a reduction in corporate financing and a negative impact on enterprise export behavior; Meanwhile, with the strengthening of market competition, enterprises will make certain changes to increase the advantages of their core products, thereby enhancing the export motivation of enterprises. Through data analysis, this paper concludes that market competition will make more enterprises adjust the allocation of product resources, so that enterprises pay more attention to the development of core products to increase the potential export motivation.
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