Service opening, Managerial Efficiency and Firms` Export——Theoretical and Empirical Analysis
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| Title | Service opening, Managerial Efficiency and Firms` Export——Theoretical and Empirical Analysis
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| Author | Sun Puyang, Hou Xinyu and Sheng Bin. |
| Organization | School of Economics, Nankai University; Collaborative Innovation Center for China Economy, Nankai University |
| Email | puyangsun@nankai.edu.cn；sherryhou0209@163.com；shengbin@nankai.edu.cn |
| Key Words | Service Reform; Export; Foreign Equity Openness; Managerial Efficiency |
| Abstract | Based on the service input market reform, the paper analyze the impact of China`s service foreign equity restrictions policy adjustment on downstream manufacturing firms` export. This paper firstly proposes a theory model to prove that service sector opening has effect on manufacturing firms` export by reducing cost, and also the effect is enhanced by firms` managerial efficiency. The paper calculates and analyses the service sector FDI encouragement and restriction policy from 1997-2007 in China using directory of foreign equity to service sector. This paper uses input-output table to measure the service sector opening and uses the manufacturing firm level data to test the relationship between service sector opening and downstream firms’ export performance. The paper finds that foreign equity permission policy for service sector significantly increases downstream manufacturing firms` export both extensive and intensive margin. But the marginal contribution is decreasing with the foreign equity opening. The paper also fins that the effect from service sector opening is more important for the firms with higher managerial efficiency. The openness of finance, transportation and communication has large effect on firms` export. And the paper`s findings are robust when considering the endogeneity problem and replacing another variable. The conclusion of the paper is that the opening reform in service input sector can help promote export. |
| Serial Number | WP1248 |
| Time | 2017-12-22 |
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