Who rides the tide of regionalization: Examining the effect of the China-ASEAN Free Trade Area on the exports of Chinese firms

Abstract

This study draws on the institutional economics and the resource-based view to examine the impact of regional institutional changes on firm exports. Specifically, we utilize the establishment of the China-ASEAN Free Trade Area as our research context. Our difference-in-difference analysis of a four-year panel of 700 Chinese listed firms lends support to our arguments that (1) regional institutional changes aimed at increasing economic incentives for intraregional business exchanges will stimulate firm exports in the regional market and that (2) private firms, more technologically competent firms, and firms with richer regional exporting experience are affected more strongly by this institutional influence. Show more