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With a little help from my friends: Multinational retailers and China's consumer market penetration

Author

Listed:
  • Charlotte Emlinger

    (Centre d'Etudes Prospectives et d'Informations Internationales)

  • Sandra Poncet

    (Centre d'Etudes Prospectives et d'Informations Internationales, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract
We investigate the supply-side repercussions on Chinese imports after the entry of multinational retailers in China. We exploit sector- and origin-country level import data for a panel of Chinese cities between 1997 and 2012, and differentiate between retailer and non retailer goods and across countries of origin of imports. We find that international global retail presence in Chinese cities produces a disproportionate rise in retail good imports from the retailers' country of origin. Our results point to a trade-cost reducing role of Western retailers that make it easier for foreign retail-good producers from their home country to export to China. Global retailers then act as a bridgehead for the penetration of the Chinese market by producers from their home country, in a way that goes beyond higher sales of imported retail goods by the retailers themselves.

Suggested Citation

  • Charlotte Emlinger & Sandra Poncet, 2018. "With a little help from my friends: Multinational retailers and China's consumer market penetration," PSE-Ecole d'économie de Paris (Postprint) halshs-01885461, HAL.
    • Handle: RePEc:hal:pseptp:halshs-01885461
    DOI: 10.1016/j.jinteco.2018.01.007
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    1. Chen, Qifei & Wang, Meng, 2022. "Opening of high-speed rail and the consumer service industry: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 31-45.
    2. Campbell, Jason, 2024. "The link between import sources and export success: Evidence from China," International Economics, Elsevier, vol. 178(C).

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    More about this item

    Keywords

    Multinational retailers; China; Imports;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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