Nonlinear impact of market segmentation on the upgrading of Chinese manufacturing enterprises
ISSN: 1750-614X
Article publication date: 26 April 2022
Issue publication date: 19 April 2023
Abstract
Purpose
Prior studies have confirmed market segmentation as an important shackle to China's macroeconomy upgrade, but the systematic analysis of microenterprise upgrade remains inadequate. This paper aims to investigate the nonlinear impact of market segmentation on microenterprise upgrade.
Design/methodology/approach
The price method was applied to calculate China's provincial market segmentation, including commodity, capital, labor and energy. The generalized method of moments was employed to examine the nonlinear impact of market segmentation on the upgrading of manufacturing enterprises based on microenterprise data from 2003 to 2019.
Findings
First, China’s heterogeneous market segmentations have been significantly reduced. Macroeconomics and policies are critical factors in market integration. Second, there is an inverted U-shaped relationship between China’s total market segmentation and the upgrading of manufacturing enterprises. Third, the relationship between the commodity market segmentation, labor market segmentation, energy market segmentation and manufacturing enterprises' upgrade is shown as an inverted U-shaped. Nevertheless, the relationship between the capital market segmentation and upgrading of manufacturing enterprises exhibits a U-shape.
Originality/value
The impact of market segmentation on the upgrading of manufacturing enterprises in China performs nonlinearly. An inverted U-shaped relationship exists between market segmentation in commodity, labor and energy and the upgrading of manufacturing enterprises, while a U-shaped relationship prevails between capital market segmentation and the upgrading of manufacturing enterprises.
Keywords
Acknowledgements
This work was supported by National Natural Science Foundation of China (Grant Nos. 71734001; 71934001); the National Social Science Foundation Project (Grant No. 17BGL266); Program for Liaoning innovative talents in University (Grant No. WR2019003); Liaoning Provincial Economic and Social Development Project (Grant No. 2021lslybkt-008); Fundamental Research Funds of Dalian University of Technology (Grant No. DUT21RW209).
Citation
Yuan, S. and Pan, X. (2023), "Nonlinear impact of market segmentation on the upgrading of Chinese manufacturing enterprises", Chinese Management Studies, Vol. 17 No. 3, pp. 510-528. https://doi.org/10.1108/CMS-08-2021-0334
Publisher
:Emerald Publishing Limited
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