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A study on the impacts of immigration network on the export performance of Chinese enterprises

MENG Yinghua 1 CAI Hongbo2 HUANG Jianzhong 1

(1.Shanghai University of International Business and Economics)
(2.Business School, Beijing Normal University)
【Knowledge Link】extended family

【Abstract】This paper assesses the impacts of immigration network on the export performance of Chinese enterprises via their micro trade data. Findings are as follows. (1) Immigration network plays a positive role in exports of Chinese enterprises. Moreover, it plays a role (mainly in extensive margin) by stimulating more enterprises to work on exporting, but exerts rather insignificant impacts on intensive margin. (2) Immigration network is conducive to improving the export probability and export intensity of Chinese enterprises. (3) Immigration network exerts positive influences upon the export probability of enterprises engaged in both processing trade and non-processing trade, but produces more influences upon enterprises working on processing trade. (4) Hong Kong, Macau and Taiwan-owned enterprises and foreign-owned enterprises have more advantages to promote exports by virtue of immigration network. (5) Immigration network plays a most appreciable role in raising the export probability of enterprises in eastern China, but its role in promoting the export probability of enterprises in central and western China is subject to influences of enterprise productivity. (6) Information and communication technologies will further increase the positive impacts of immigration network on the export probability of Chinese enterprises.

【Keywords】 immigration network ; export probability; export intensity;


【Funds】 National Social Science Foundation (15ZDA058) Philosophy and Social Sciences Research of Ministry of Education (13JZD010) National Natural Science Foundation (71403024) Humanities and Social Sciences Research Planning Foundation of Ministry of Education (14YJA790001) Shanghai Education Committee Scientific Research Innovation Project (14YS135) Fundamental Research Funds for the Central Universities

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    [2]. ② There is a uniform price in market transactions, whereas if transactions are done though networks, the price will be subject to influences of the relationship between buyers and sellers and there is no uniform price. Besides, generally speaking, homogenous products with a uniform price, are traded through markets, whereas differentiated products with different prices, are traded through networks. [^Back]

    [3]. ③ Five Relationships: blood relationship, region relationship, God relationship, trade relationship and product relationship; some propose to take the education relationship as one of the bases for social relations to come into being. [^Back]

    [4]. Forbes, 138–144 (1994–7–18). [^Back]

    [5]. ⑤ John Naisbitt (1996), Fang Shengchun (1997), Liu Hong (2003), Liu Quan and Dong Yinghua (2003), Liao Xiaojian (2003). [^Back]

    [6]. ⑥ When the number of immigrants to country C is 0, since 0 has no logarithm, we obtain its logarithm by turning 0 into 0.00001. It has been verified in this paper that omitting countries with no immigrants will not change regression results. [^Back]

    [7]. ⑦ In addition to Hong Kong, Singapore also plays a similar intermediary role. However, in the light of the development of such economies as Brazil, India and former Soviet Union, it is difficult for them to enjoy the similar “intermediary” acceleration, exactly because they lack a region like Hong Kong, which maintains intimate contacts with developed economies. [^Back]

    [8]. ⑧ World Chinese Businessmen Website (http://www.wcbn.com.sg) run by the Singaporean government is a representative. Besides, Chinese businessmen also proceed with commercial information communication via such channels as various Chinese websites, BBS and blogs, which are new modes of communication among Chinese businessmen (also known as “network relationship”). [^Back]

    [9]. ⑨ For the convenience of explanation, the cross term here is not ln_ict × ln_oveas_2000, but (ln_ict − X) × (ln_overseas_2000 − Y). X and Y represent the average ICT application level and average immigration network respectively. Put it in another way, we first deduct averages from these variables and use the product of these new variables as cross-term. Undoubtedly, we have performed tests to the original cross term. Even though estimation coefficients of the number of Chinese immigrants and the level of information technology are negative, estimation coefficient of the cross-term of the number of Chinese immigrants and the level of information technology is positive, and they still exert positive impacts on an enterprise’s export probability. Due to limited space, regression results will not be listed here, and whoever interested can ask the authors for the regression results. [^Back]

    [10]. ⑩ Regression results by the two-step method are consistent with these results. Table (9) only lists regression results of using labor productivity to measure enterprise efficiency. We have also tried to use the number of employees to measure enterprise efficiency, and regression results remain unchanged. [^Back]


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This Article



Vol , No. 10, Pages 54-64

October 2015


Article Outline



  • 1 Introduction
  • 2 Literature review
  • 3 Heterogeneous trade and information network: theoretical model
  • 4 Data specification
  • 5 Immigration network and China’s export trade: extensive margin and intensive margin
  • 6 Immigration network and China’s export trade: data analysis at the enterprise level
  • 7 Conclusion
  • Footnote