Abstract

Based on the Export Similarity Index (ESI), this study examines the export competition pattern among Chinese cities in the global market from 2000 to 2017, analyzing the mechanism of competition using a panel Granger causality test and a gravity model. The study reports several findings, as follows: (1) The competition pattern among Chinese cities first increased and then decreased, and the ESI between most cities was low. (2) More provincial capitals in the central and western regions converged with the developed eastern regions in their export structures, and cities in the regions of Beijing-Tianjin-Hebei, Yangtze River Delta, and Pearl River Delta competed differently. (3) Using all cities in the sample, the results show a bidirectional causal relationship between a city’s Gross Domestic Product (GDP) and the average export competitive pressure from other cities. However, results for the provincial capitals and three urban agglomerations indicated that GDP intensifies competition among cities. (4) The gravity model’s regression results show that the larger the economic size and the smaller the distance between cities, the more obvious the competition between them. This study provides a new direction for the study of export trade from the perspective of urban scale.

Highlights

  • Export trade is an important driving force behind urban development in China [1].Chinese cities at different stages of development and on different bases of development vary in the types and quality of goods they export to other countries, while competing with each other [2]

  • We aannaallyyzzeeddththeecocorrrerlealtaitoinonbebtewtweeenenthtehGe DGPDaPndanAdEASIEoSfIeoafcheaccithycfirtoymfr2o0m002t0o02001to7 2to01o7btoaionbtthaeincothrreeclaotriroenlactoioenfficcoieenfftic(ciec)not f(ceca)cohf ceiatyc.hWcietya.rWraengaerrdatnhgeecdcsthine cacsscienndasincegnodridnegr otordfoermtoafoscramttear spclaotttearndpldortaawnda bdirta-owrdaerbifit-totirndgecrufritvtein(gseceuFrivgeu(rsee6e).FFigourrme o6s)t. cFiotiresm, tohset cities, the correlation between the Gross Domestic Product (GDP) and Average Export Similarity Index (AESI) is strong

  • AESI has no impact on GDP in Pearl River Delta (PRD), because the competitive relationship between exports of cities in PRD is not generated by the gradual expansion of local enterprises, but directly caused by foreign capital, with obvious homogeneity at the beginning

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Summary

Introduction

Export trade is an important driving force behind urban development in China [1]. Chinese cities at different stages of development and on different bases of development vary in the types and quality of goods they export to other countries, while competing with each other [2]. Shenzhen and Dongguan are located in close proximity, and both have developed economies in the Pearl River Delta (PRD) As in their case, similar export structures often lead to fierce competition between cities. In China, a country experiencing rapid urbanization and industrialization [3,4], the competition between export cities is complex and changing Analyzing this kind of competitive relationship will provide a scientific basis for the government to produce development plans and industrial layouts. To compete with other cities in the world trade market is a challenge that must be faced in the process of urban development The analysis of this evolution process and the internal mechanisms of this competitive relationship will help cities consider their own economic and geographic environments more scientifically when constructing export strategies.

Literature Review
Hypothesis and Framework
Panel Unit Root Tests
Panel Cointegration Tests
Panel Granger Causality Test
Gravity Model
Study Area
33. RReessuullttssaanndd DDiissccuussssiioonn
CCoorrrreellaatiioon between AESI and GDP
Causal Analysis of AESI and GDP
Relationship between ESI and Distance
Findings
Conclusions
Full Text
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