Will Local Financial Development Affect the Competitive Advantage of Chinese Enterprises' Exports?

Authors

  • Luis Alfredo Ávila-López Faculty of Accountancy and Business Administration, Universidad Autónoma de Baja California, Calzada Tecnológico y Universidad S/N Delegación Mesa de Otay C.P.22390, Tijuana, Mexico
  • Mengxue Zhen School of Finance and Taxation, Southwestern University of Finance and Economics, 555, Liutai Avenue, Wenjiang District, Chengdu, Sichuan, P. R. China, 611130, Chengdu, China.
  • Carolina Zayas-Márquez Faculty of Accountancy and Business Administration, Universidad Autónoma de Baja California, Calzada Tecnológico y Universidad S/N Delegación Mesa de Otay C.P.22390, Tijuana, Mexico

DOI:

https://doi.org/10.22452/IJIE.vol15no1.2

Keywords:

City commercial bank, Export, Quasi-natural experiment, Labour costs, Institutions

Abstract

Many  studies  confirm  the  impact  of  financial  development  on  the  macro economy,  but  systematic  studies  of  the  impact  of  financial  development  on  corporate exports  is  still  lacking.  Based  on  the  quasi-natural  experiment  established  by  city commercial banks, this paper uses micro-data of Chinese industrial enterprises from 1998 to 2013 and adopts a double difference method to test the impact of the development of local financial institutions on corporate exports. The results show that the establishment of  city  commercial  banks  has  significantly  increased  the  export  participation  rate  and total  export  volume  of  manufacturing  enterprises  in  the  city  where  they  are  located; comparatively  speaking,  its  impact  on  the  export  expansion  margin  of  industrial enterprises exceeds the intensive margin. At the same time, the study also found that the above-mentioned influences exist in both long-term and short-term, and in enterprises of different sizes and attributes. These findings provide new evidence for understanding the relationship between local financial development and corporate exports.

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Published

2023-01-01

How to Cite

Luis Alfredo Ávila-López, Mengxue Zhen, & Carolina Zayas-Márquez. (2023). Will Local Financial Development Affect the Competitive Advantage of Chinese Enterprises’ Exports?. Institutions and Economies, 27–44. https://doi.org/10.22452/IJIE.vol15no1.2

Issue

Volume 15, Issue 1 (2023)

Section

Articles

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