The Impact of Subsidies on Export Behavior: Evidence from Jiangsu Manufacturing Enterprises

Lu Xu

doi:10.54097/75kq8z78

Authors

Lu Xu

DOI:

https://doi.org/10.54097/75kq8z78

Keywords:

Subsidizing PSM-DID Export Behavior Manufacturing Enterprise.

Abstract

A study is conducted on the causal relationship between subsidies and export scale of 16938 manufacturing enterprises in Jiangsu Province that were continuously operating in the Chinese industrial enterprise database from 2012 to 2014, using propensity score matching method and multiple difference method. The results indicate that subsidies have a positive impact on the export behavior of manufacturing enterprises in Jiangsu, that is, subsidies are beneficial for enterprises to expand their export volume and make export decisions. In addition, subsidies have a more significant promoting effect on the export behavior of enterprises that continuously receive subsidies than those that receive subsidies for the first time. Government subsidies can effectively improve the export behavior of manufacturing enterprises in Jiangsu, but the conditions for the government to increase the export scale of enterprises are limited. Therefore, building the competitiveness of enterprises is a necessary condition for Jiangsu manufacturing enterprises to enter the international market.

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