Emerald | Journal of Chinese Economic and Foreign Trade Studies | Table of Contents

Effectiveness of the “Made in China” TV advertisement: Evidence from a survey at an American university

Fri, 01 Feb 2013 00:00:00 +0000

Abstract

Purpose – The purpose of this paper is to examine the effectiveness of the “Made in China, Made with the World” advertisement broadcast on the US television station CNN in 2009 and derives recommendations for China's further efforts in promoting the image of products made in China (PMC). Design/methodology/approach – Through a survey based on the Solomon four-group design, this study collected primary data from 546 students at an American university in 2010 and used the data to test the effectiveness of the CNN advertisement and identify factors that affect the respondents' perceptions about PMC. Findings – Statistical tests indicate that the TV advertisement did not result in the expected effects and even had some boomerang effects on the perceptions about PMC and China's developments, and regression analysis confirms these conclusions. Also, the TV advertisement received low ratings from the respondents in credibility, trustworthiness, rationality, information, stimulation, and excitability. Practical implications – As exports continue to play an important role in the Chinese economy and PMC are likely to face more challenges in the global markets, China needs to understand both consumer preferences and product safety regulations in the foreign markets, focus more on quality and safety over low prices, and improve the effectiveness of its promotion efforts on the basis of scientifically sound studies. Originality/value – While the CNN TV advertisement was China's first TV campaign abroad to enhance the image of PMC, this paper presents one of the first studies for assessing the effectiveness of the advertisement and deriving recommendations for China's further efforts in promoting PMC.

What's special about the extensive and intensive margins in Chinese manufacturing exports?

literatinetwork@emeraldinsight.com (Yan Zhou, Jiadong Tong, Puyang Sun) — Fri, 01 Feb 2013 00:00:00 +0000

Abstract

Purpose – The purpose of this paper is to examine the effects of gravity variables and trade costs on China's export margins. Design/methodology/approach – Following the structural gravity model with firm heterogeneity, the paper measures the extensive margins and intensive margins of China's export across 46 export destinations and estimates the linkage between export margins and its potential determinants. Findings – The empirical results confirm the gravity relationship hold for bilateral trade and export margins. Furthermore, trade costs have different influence on extensive margins and intensive margins as the structural gravity model with firm heterogeneity expected. The paper also shows the rapid growth of China's export is mainly along the intensive margins which are increasing in fixed cost for export. Originality/value – The paper contributes to the measurements of China's export margins and the empirical research on effects of trade liberalization on China's foreign trade.

Revisiting the economic effect of export subsidy: an expansion of the traditional analysis

literatinetwork@emeraldinsight.com (Zesheng Sun, Shuyun Wang) — Fri, 01 Feb 2013 00:00:00 +0000

Abstract

Purpose – The purpose of this paper is to attempt to expand the traditional economic effect analysis of export subsidy, which has previously ignored the incentive of export subsidies in terms of competition from re-importation. Design/methodology/approach – The paper performs a comparative static analysis based on the traditional welfare analysis of export subsidies by introducing different transportation costs and using small country model and large country model, respectively. Findings – Compared with the traditional analysis, exporting countries that implement export subsidies suffer less welfare loss and induce intra-industry trade of homogeneous products. Due to export subsidy policy incentives, transportation costs heavily influence trade patterns, trade volumes and welfare. Trade patterns evolve from unidirectional export to intra-industry trade as transportation costs are reduced, with the main source of welfare loss coming from transportation costs. The distribution of export subsidies is biased when domestic transportation costs are high. Under low domestic transportation costs, inefficient intra-industry trade would emerge as a result of export subsidy incentive. Practical implications – The findings could be helpful to understand the impact of export subsidy policy on trade pattern, trade volumes and welfare when considering international and domestic transportation cost. Originality/value – The paper emphasizes the incentive of export subsidy on re-importation, and links it with transportation costs, which expand the traditional export subsidy analysis.

2012 Awards for Excellence

Fri, 01 Feb 2013 00:00:00 +0000