Impact of Trade Promotion Agencies on China's Export Binary Marginal Growth

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On the basis of the new-new trade theory, this paper makes use of the micro-level export data of China’s international trade with sixteen major trading partners from CEPII BACI international trade database of1996-2011 and decomposes the total export growth into the intensive margin and expansion margin, so as to conduct an empirical analysis of the impact of trade promotion agency on China’s export binary marginal growth with the GMM dynamic panel data model estimation method. The results show that trade promotion agency has a significant positive impact on the intensive margin and expansion margin of export growth,the promoting effect on the export growth expansion margin is greater than that on the intensive margin.The trade promotion committees can play more significant role in promoting export than embassies and consulates stationed abroad. The promoting effect of trade promotion agencies on export growth binary margin of medium and high-tech industry products is larger than that on the medium and lower technology industry products. Therefore, China should increase the number of trade promotion agencies, in particular,have more Trade Promotion Committees. On the basis of the new-new trade theory, this paper makes use of the micro-level export data of China’s international trade with sixteen major trading partners from CEPII BACI international trade database of 1996-2011 and decomposes the total export growth into the intensive margin and expansion margin, so as to conduct an empirical analysis of the impact of trade promotion agency on China’s export binary marginal growth with the GMM dynamic panel data model estimation method. The results show that trade promotion agency has a significant positive impact on the intensive margin and expansion margin of export growth, the promoting effect on the export growth expansion margin is greater than that on the intensive margin.The trade promotion committees can play more significant role in promoting export than embassies and consulates stationed abroad. agencies on export growth binary margin of medium and high-tech industry products is larger than that o Therefore, China should increase the number of trade promotion agencies, in particular, have more Trade Promotion Committees.
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