Paper Title
AN EMPIRICAL TEST OF THE HOME MARKET EFFECT AT THE INDUSTRY LEVEL IN CHINA BASED ON THE DATA OF GENERAL TRADE OF 13 INDUSTRIAL SECTORS FROM 2012 TO 2022

Abstract
This paper examines the relationship between export value and domestic market sales in the general trade sector of 13industry categories spanning from 2012 to 2022, using a dataset merged from the China Industrial Enterprise Database, Customs Import and Export Database, and Provincial Commodity Retail Price Index from the China Statistical Yearbook. The study finds that domestic market sales have a significant promoting effect on export value, with varying degrees of impact across industries with different factor intensities. Furthermore, the study shows that increasing retail market segmentation levels in an industry can increase its exports while amplifying the overall effect of domestic market promotion. The current export value of an industry is also positively influenced by the lagged export value from the previous period. The expansion and strengthening of the domestic market not only enhances economic autonomy but also helpsconsolidateandenhance the performance of capital-intensive and technology-intensive industries in foreign exports. This provides a practical basis for China's resolute implementation of the strategy to expand domestic demand. Keywords - Home Market Effect; Market Segmentation; Heterogeneity of Factor Intensity; Strategy of Expanding Domestic Demand