Research on Dual Margin of China's Export after Entry into WTO
By applying the decomposition method of Hummels and Klenow(2005), this paper finds that China's export growth after its entry into the WTO mainly stems from the intensive margin and the contribution of the extensive margin is insignificant. There was no substantial change in this growth mode before or after the financial crisis. By a close decomposition of the intensive margin,this paper finds that the export growth from the intensive margin is principally a result of the quantity expansion. Therefore, to transform this growth mode is a matter of great urgency. Using bilateral panel data of China with its 22 trade partners, the empirical research suggests that the main decisive factors of the extensive margin are destination market scale, multi-lateral resistance and FDI, and the main decisive factor of the intensive margin is fixed cost. The conclusions provide some important empirical support for China's formulation of current export stabilization policies