Abstract

The domestic economy is facing many challenges brought by simultaneously dealing with the slowdown in economic growth，making difficult structural adjustments，and absorbing the effects of previous economic stimulus policies in the period of the 13^th Five-Year Plan.From the perspective of foreign trade，we must clearly understand that the overall environment for China’s foreign trade growth is still not optimistic.On one hand，the process of world economic recovery is twists and slow，resulting in weak global market demand that it is difficult to return to the high-level of growth before the financial crisis in short time.On the other hand，with the arrival of“Lewis turning point”，China’s labor costs continue to rise，resource，energy supply and ecological environment constraints intensified.These result in traditional industries export comparative advantage from labor-intensive processing trade dropped sharply.Therefore，there are the major issues which we must first face，such as how to implement the two-way open strategy，improve the quality and level of opening to the outside world，and further expand the breadth，depth and space of opening to the outside world，promote the free flow of international and domestic factors，and the efficient allocation of resources.

The existing export researches were mostly on the perspective of the total export volume，structure（such as the proportion of different technical content of trade goods，dual marginal，specialized roads，value chain，etc.）changes.The book based on the market dynamics，which is one of the important characteristics of themarket economy，and study changes of China’s position in the world economy from the empirical point of view.Moreover，we provide scientific judgement to whether China exist“domestic demand hypothesis”and other major practical problems.Furthermore，we systematically analyze and demonstrate the interaction between external demand，competitiveness，domestic demand and other variables.Especially，we study its impact on the dynamic contribution of different forms of enterprises in China’s export changes and the specific mechanism.

The book includes eight chapters，in addition to the introduction，the contents of other chapters can be summarized as follows：

The second chapter is the literature review.We enumerate and summarize the two aspects of the project involved in the literature，that is，firm dynamics and the factors which impact export.Moreover，we provide survey on their own problems，and why should be combined in accordance with the spirit of the project design.And it can be used to determine the status of this book in the existing research.

In the third chapter，we use the full-sample industrial enterprises in the Chinese economic census database，as well as the maximum likelihood estimation and nonparametric test of the distributed parameters to estimate and test the difference between the size and the productivity of the Chinese industrial enterprises from the general and the industry level，thus provide a solid basis for the assumptions made by the follow-up study.

In the fourth chapter，we use the three-year rule to scientifically define the entry，incumbent，short-term survival and exit of the enterprise，and analyze theadvantages of the three-year rule relative to the two-year rule.Furthermore，it provides the dynamic characteristics of Chinese industrial enterprise based on fully considering the characteristics of the existing Chinese industrial enterprises database.In addition，this chapter also provides the application of enterprise dynamic division in firm survival analysis.

The fifth chapter includes the variable price markup and the entry choice of potential enterprises for different industries under the assumption that the productivity of enterprises in different industries is subject to the Pareto distribution.We systematically analyze the role and influence mechanism of internal and external demand，economic scale and competitiveness in China’s export growth based on the HS data classification and the four-digit level data of China’s industry.

The sixth chapter uses the database of Chinese industrial enterprises and subdivides the overall export intensity into the incumbent effect，the entry effect and the exit effect.The emphasis focuses on the impact of production capacity on the dynamic effects ofdifferent types of enterprises and their mechanisms after removing the perturbation of short-term surviving enterprises under the assumption that the marginal cost is variable.

The seventh chapter analyzes the causes and outcomes of structural deviation between export and domestic demand based on the ISIC 4-digit industry level data in 51 countries and the analysis paradigm of“typical fact-theoretical hypothesis-empirical evidence”.

Theconcluding chapter provides the conclusions and policy recommendations.We put forward the specific policy suggestions based on the previous analysis，which can effectively promote the coordinated development of internal and external needs，and how to reshape the fundamental advantages of China’s foreign trade transformation and upgrading the“new system of open economy with Chinese characteristics”.