Abstract:
Scientifically understanding firms’ trade mode is of great significance to construct the new development pattern of “Dual Circulation” under the global economic uncertainty. From the perspective of trade intermediaries’ agglomeration, this paper use the trade data of Chinese export enterprises from 2000 to 2013 analyzes and verifies the impact of destination country’s economic policy uncertainty on firms’ trade mode upgrading. The results show that: Both destination country’s economic policy uncertainty and trade intermediaries’ agglomeration significantly reduce the share of processing trade and increase the share of ordinary trade of a firm. This conclusion remains robust for different estimation models, estimation methods and estimation samples. It can be seen that the uncertain external environment will force the processing trade firm with “two ends outside” to transform into ordinary trading firm, and the reasonable development and layout of trade intermediaries in the country will effectively alleviate the foreign constraints of export firms and further strengthen the resilience during the upgrading of foreign trade.