Does “Internet Plus” Promote New Export Space for Firms? Evidence from China

Xianhai Huang, Xueyin Song and Xinyue Hu

China & World Economy, 2018, vol. 26, issue 6, 50-71

Abstract: Based on data from the Chinese Industrial Enterprises Database, this paper investigates the effect of “Internet Plus” on the trade destination mix at the enterprise level. The analysis extends the classic dual margins to three dimensions: destination extensive, destination intensive and destination structural margins. The paper suggests that connecting to the internet not only raises Chinese firms' propensity to export, but also extends the destination extensive margin. In addition, Internet Plus could create a synergistic effect for internet‐enabled enterprises, that is, the development of the destination country's internet access benefits domestic firms' export participation. Finally, the paper finds that Internet Plus, rather than increasing the intensive or structural margins, leads to the transfer of exports to lower‐middle‐income countries and helps firms achieve competitiveness and thus increases their profit. The paper provides an explanatory mechanism and empirical evidence for firms' use of the internet to optimize export space.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://doi.org/10.1111/cwe.12261

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:chinae:v:26:y:2018:i:6:p:50-71

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1671-2234

Access Statistics for this article

China & World Economy is currently edited by Yongding Yu

More articles in China & World Economy from Institute of World Economics and Politics, Chinese Academy of Social Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().