Price-Cost Markup and Decision of Firms’ Domestic Value Added:A Firm-Level Empirical Study of ChinaChinese Full Text
ZHAO Ling;GAO Xiang;HUANG Jianzhong;
Abstract: From the perspective of price-cost markup, this paper analyzes the micromechanism of domestic value added ratio（DVAR） of firms. exports using the data of Chi-nese manufacturing firms over the period of 2000-2006. The results show that markupratio can significantly increase Chinese export firms. DVAR and the conclusion is robust.The following theoretical expectations are also verified by mechanism analysis. On onehand, markup ratio increases export firms. DVAR by increasing export price, namely the"product price effect"; on the other hand, higher markup ratio improves firms. productionefficiency and reduces the marginal cost, which also increases export firms. DVAR,namely the "marginal cost effect". Besides, the "marginal cost effect" is greater than the"product price effect".
Keywords：
Domestic Value Added Ratio（DVAR）; Markup Ratio; Product Price Effect; Marginal Cost Effect;
- DOI：
10.13510/j.cnki.jit.2018.11.002
- Series：
(J) Economics ＆ Management
- Subject：
Trade Economy
- Classification Code：
F752.62
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