How Does Market Fragmentation Affect Enterprises"Going Global"?——Based on Firm Size and Production Efficiency
Against the backdrop of building a unified national market and constructing a new develop-ment pattern,the national market is gradually transitioning from fragmentation to integration.This study meas-ures market fragmentation in China using the relative price index and investigates the relationship between mar-ket fragmentation and firms'outward direct investment(ODI)from the perspective of firm size and production efficiency.The analysis explores the underlying mechanisms of this relationship.The results indicate that mar-ket fragmentation promotes ODI,with smaller firms tending to anchor themselves in local markets,leveraging these markets to expand and accumulate production efficiency.Conversely,larger firms exhibit a stronger tendency and scale of ODI in response to market fragmentation.High-productivity firms are more sensitive to the loss of resource allocation efficiency caused by market fragmentation.When facing market fragmentation,these firms are more motivated to pursue ODI to achieve better resource allocation efficiency in overseas mar-kets,thereby further enhancing production efficiency.The sensitivity of firms to market fragmentation varies across regions with different levels of development;Market fragmentation has an insignificant impact on ODI in less developed regions but promotes ODI in more developed regions.The recommendation is to firstly address market fragmentation in less developed regions,adopting a multi-faceted approach to supporting firms'outward direct investment.
market fragmentationoutward direct investmentregional administrative monopolyunified national marketenterprises"going global"
NETL
NSTL
万方数据
