Domestic Demand Upgrading,Product Mix Adjustment and Export Competition Strategy
Fully leveraging the advantages of China's ultra-large-scale market and the potential of domestic demand has become the key to the construction of a new development pattern of dual circulation.However,most studies analyze the formation of China's comparative advantages from the supply-side perspective,and few scholars have conducted in-depth research on the internal logic and potential relationships between the upgrading of domestic demand and the adjustment of enterprise product mix from the demand-side perspective.This paper incorporates non-homothetic preferences and the product quality ladder assumption into a model of heterogeneous multi-product firms,dissecting domestic demand into demand scale and demand structure.It analyzes the impact of domestic demand upgrading on the export product mix of enterprises within a general equilibrium framework and discusses the mechanisms and strategies involved.Using Chinese firm-product-destination level data from 2000 to 2014,this paper constructs exogenous indicators for demand scale and income demand elasticity to verify the differential impacts of domestic demand upgrading on the adjustment of the export product mix within enterprises.This paper finds that compared to established products within a firm,emerging products have higher prices and quality.Therefore,in response to the expansion of the domestic demand scale,firms adopt cost competition strategies for exports;in response to the upgrading of the domestic demand structure,firms adopt quality competition strategies for exports.The mechanism test reveals that the expansion of demand scale intensifies market competition and reduces export costs,which gives firms an export price advantage;the demand structure upgrading alleviates market competition and improves export quality,granting surviving firms an export quality advantage.The conclusions of this paper indicate that it is necessary to fully utilize the scale and structural advantages of China's domestic demand to stabilize and enhance the quality of exports,leverage the regulatory role of multi-product firms through differentiated competition strategies,and optimize the regional industry opening layout to promote comprehensive and differentiated openness to the outside world.The marginal contributions of this paper are:expanding the demand-side homothetic preferences assumption to non-homothetic preferences,thereby broadening the conclusions related to the home market effect from a single perspective;considering the typical facts of multi-product exporting firms and combining the assumption of internal product quality ladders of enterprises,it supplements existing research on the endogenous determination of enterprise export mix;and using the trade value equation for enterprises'products exported to destination markets to calculate the income demand elasticity between different products of Chinese enterprises for each year of the sample period,thus expanding the methods for measuring demand structure indicators at the micro level.
NETL
NSTL
万方数据
