Research on the Impact of Market Maturity on Local Import and Export Trade

Abstract

Due to many endogenous problems in the market maturity, it is impossible to accurately judge its impact on import and export trade. By constructing the panel fixed effect model and other methods, this paper provides more insights for studying the impact of market maturity on import and export trade. The results of this paper are as follows: (1) The market maturity can significantly promote import and export trade. Compared with the central and western regions, the import and export trade in eastern China is more easily affected. (2) In such a circumstance, there are three mechanism variables including environmental pollution, foreign direct investment, and urbanization, in which environmental pollution has a negative effect, while foreign direct investment and urbanization have a positive effect. On this basis, policymakers should combine the development of import and export trade with the marketization level, and take environmental pollution, foreign direct investment, and urbanization into account.