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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.
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Xu et al. (2024) studied this question.
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