Financing constraints and the export partnerships with RCEP: Evidence from manufacturing firms in China

IF 2.9 3区经济学 Q1 ECONOMICS

Journal of Asian Economics Pub Date : 2024-12-30 DOI:10.1016/j.asieco.2024.101870

Qing Peng , Zhenhao Chen , Jie Li

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Abstract

Despite the continued growth of Chinese exports post the COVID-19 shock, concerns persist regarding trade relationship stability. Particularly within the Regional Comprehensive Economic Partnership (RCEP), a critical export partner for China, many firm-level partnerships exhibit short durations. Through survival analysis, we demonstrate the significant role of financing constraints in these unstable export partnerships with RCEP. Aligned with the pecking order theory of exports, financing constraints prompt firms to either reduce the number of export destinations or shift to larger economies as export partners, thereby destabilizing export partnerships with RCEP members. Moreover, our findings indicate that while traditional bank support benefits large firms in mitigating the adverse effects of financing constraints, small firms rely more on financial support from intermediaries and government subsidies. In addition to financial support, firms can maintain stable export partnerships with RCEP by diversifying export products.

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来源期刊

Journal of Asian Economics ECONOMICS-

CiteScore

4.70

自引率

9.40%

发文量

期刊介绍： The Journal of Asian Economics provides a forum for publication of increasingly growing research in Asian economic studies and a unique forum for continental Asian economic studies with focus on (i) special studies in adaptive innovation paradigms in Asian economic regimes, (ii) studies relative to unique dimensions of Asian economic development paradigm, as they are investigated by researchers, (iii) comparative studies of development paradigms in other developing continents, Latin America and Africa, (iv) the emerging new pattern of comparative advantages between Asian countries and the United States and North America.