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Market Segmentation,Operating Efficiency and Export Growth

The manufacturing costs increase quickly during these years,making the cost advantage of Chinese products decrease sharply.Thus,China faces greater challenge in the export market.It's a theoretical and practical important question that how to make China's export grow continually.Based on the perspective of market segmentation,this article explains the phenomenon of China's persistent export expansion and tries to find new engines of export growth.This article,based on the theoretical and empirical evidences,finds that the more serious of the degree of market segmentation,the less efficient of the local companies and the more lack of competitive advantage in the export market.Thus,market segmentation negatively influences the scale of regional export,indicating that market segmentation is a critical obstruction of export growth.Furthermore,this article finds that average wage has positive effect on export,suggesting that higher wage will help firms to attract more productive employees and the benefits associated with higher wage will greater than the costs.We propose that the continuous promotion of market integration will help improve the companies' operating environment,enhance Chinese companies' operational efficiency and international competitive advantage,and play a critical role in sustaining export growth.