The Impact of Industry Concentration and Firm Location on Export Propensity and Intensity: An Empirical Analysis of Chinese Manufacturing Firms

Recent export studies have focused on the internal/controllable determinants of export performance. The external/uncontrollable determinants of export performance have received scant research attention. In this study, the authors examine two key external/uncontrollable factors, namely, industry concentration and firm location, in the context of Chinese manufacturing firms. In addition, the authors include several frequently studied factors such as firm size, capital intensity, technology innovation, and industry in the analysis as covariates. On the basis of logistical regression and multiple regression analysis, the authors find that both domestic market concentration and firm location are potent predictors of Chinese firms’ export propensity and export intensity. The authors discuss implications of the findings to expose the reason behind the success of Chinese exporters in international markets.

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