DOES INNOVATION MATTER FOR EXPORT IN CHINA'S RURAL ENTERPRISES? EMPIRICAL EVIDENCES FROM JIANGSU

This study examines the relationship between technological innovation and export, using data obtained through surveys of enterprises in three counties of Jiangsu, China. It reveals that most rural enterprises in Jiangsu are oriented toward China's domestic market and there exists significant geographic difference regarding export probability and intensity. It also finds that most rural enterprises are not very innovative measured by multiple indicators. Innovation does not seem to have significant impacts on export (either probability or intensity) in rural enterprises of Jiangsu. The most significant factors contributing to export probability of rural enterprises include presence of imported equipments in the enterprises and their size. However, no variable well explains export intensity among rural enterprises. It is recommended that more studies be conducted to better understand the export behaviors and mechanisms of rural enterprises in developing countries.