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《Economic Research Journal》 2005-12
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Market Segmentation and the Expansion of China's Export

Zhu Xiwei, Jin Xiangrong and Luo Deming(Center for Research of Private Economy, School of Economics, Zhejiang University)  
This paper discusses the market segmentation extension of Melitz (2003) open economy model by introducing the inverse relationship between the fixed cost and the marginal cost. It shows that firms with different kinds of technology all prefer to export when entry costs of the home market are very high. This property may explain that severe market segmentations produce the distortion that Chinese private firms try to explore oversea market instead of home market, which results in rapid expansion of China's export.
【Fund】: 教育部哲学社会科学研究重大课题攻关项目——中国民营经济制度创新与发展问题研究(课题组首席专家李维安教授 项目批准号:03JZD0018);; 国家哲学社会科学创新研究基地浙江大学民营经济研究中心资助
【CateGory Index】: F752.62
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