Border revitalization policy and export competitiveness

Hongguang Sui, Md Shariful Islam, Xiaoxue Du and Shihua Zhang

Southern Economic Journal, 2025, vol. 92, issue 2, 527-560

Abstract: This study explores the impact of China's “Revitalize Border Areas and Enrich Residents' Lives Policy” on export competitiveness in border‐region firms. Using a difference‐in‐differences model, the analysis reveals a significant improvement in export competitiveness among firms affected by the policy. Robustness checks consistently confirm the positive effect. Key drivers include improvements in institutional environments, infrastructure, and financial crisis mitigation. The policy disproportionately benefits state‐owned enterprises, trade firms, and capital‐intensive industries, with variations across firm size and trade partners. Further analysis with the Generalized Method of Moments reveals that while the policy enhances competitiveness by improving firm performance, it also leads to higher firm exits, suggesting that only the most productive firms succeed. These findings emphasize the role of border revitalization policies in promoting inclusive economic growth in border regions.

Date: 2025
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https://doi.org/10.1002/soej.12766

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Persistent link: https://EconPapers.repec.org/RePEc:wly:soecon:v:92:y:2025:i:2:p:527-560

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