Does institutional innovation in trade in services enhance the export propensity of enterprises? Evidence from China’s innovative pilot policy on trade in services

Trade in services constitutes a vital component of international trade and a significant domain of global economic cooperation. Taking China’s innovative pilot policy on trade in services (the TSP policy) as a quasi-natural experiment, this research employs a difference-in-differences (DID) model and Chinese A-share listed enterprises from 2010 to 2023 to investigate the effect of the TSP policy on enterprises’ export propensity. The empirical results reveal three key findings. First, the implementation of the TSP policy significantly enhances the export propensity of enterprises. Second, the impact of the TSP policy on enterprises’ export propensity exhibits substantial heterogeneity. Specifically, the promotional effect is more pronounced in state-owned firms, large-scale firms, firms with low financing constraints, firms with high ESG scores, firms with high asset turnover, and firms in markets with high concentration. Third, artificial intelligence application and digital economic development serve as the critical transmission channels through which the TSP policy affects corporate export propensity. Additionally, the implementation of the TSP policy could also increase export revenues for enterprises. This research contributes to the existing research on the economic effects of the TSP policy and provides valuable insights for policymakers to optimize export promotion policies.