Domestic market integration and multi-product firms' export behaviours: evidence from China

This study investigates the effects of domestic market integration (DMI) on corporate export behaviour. Utilizing a regional DMI index and data from Chinese A-share listed multi-product firms between 2006 and 2015, we find that DMI expands export scale and reinforces firms' export behaviours. Specifically, quality-based competence firms upgrade the quality of their core products, whereas cost-based competence firms reduce the prices of their core products. These findings have significant implications for emerging countries implementing upgraded international trade and prompting domestic market integration.