Abstract:

Using the more recently developed panel threshold regression models, this paper investigates this nonlinear relationship between Pricing to market (PTM) of export prices on industry level and concentration ration of industry and nonlinear relationship between Pricing to market (PTM) of export prices on industry level and export tax rebates under two different economic backgrounds. The results of the study include the following four points. At first, PTM which is before financial crisis is different from PTM which is after financial crisis. Secondly, in terms of industry concentration, industry concentration always exercises a great influence on PTM under different economic backgrounds, and there is a nonlinear relationship between PTM and industry concentration under different economic backgrounds. Thirdly, In terms of export tax rebates, there is neither linear nor nonlinear relationship between PTM and export tax rebates before financial crisis while export tax refund has significant effects on PTM after financial crisis. There is a threshold effect between PTM and export tax refund after financial crisis. Finally, Compared with the export tax rebate, industry concentration has more significant effect on PTM. In the end, this paper points out the policy implications of this conclusion.