| ID | 143411 |
| Title Proper | Market potential, firm exports and profit |
| Other Title Information | which market do the Chinese firms profit from? |
| Language | ENG |
| Author | Ouyang, Puman ; Zhang, Teng ; Dong, Yan |
| Summary / Abstract (Note) | This paper examines the effects of market potential on Chinese firms' exports and profit by using data from the Chinese industrial enterprise database and The China City Statistical Yearbooks during 1998–2007. We find that international market potential has positive effects on firm exports, but negative effects on firm profit, while domestic market potential has opposite impacts. This finding suggests that Chinese firms' profit mainly stems from the domestic market. Moreover, the adverse impact of international market potential on firm profit diminishes with the increase of firm productivity, and some firms with higher productivity may benefit from the expansion of foreign markets. |
| `In' analytical Note | China Economic Review Vol. 34; Jul 2015: p.94-108 |
| Journal Source | China Economic Review 2015-07 34 |
| Key Words | Firm Productivity ; International Market Potential ; Domestic Market Potential ; Profit Source |