Research On The High-quality Development Of Equipment Manufacturing Enterprises In China

The high-quality development of the equipment manufacturing enterprises in China is considered necessary and urgent given the current situation.From a global perspective,the equipment manufacturing enterprises in China are challenged by not only the high-end competitors from the developed countries but also their low-end counterparts based in the developing countries.On top of this,the escalating trade tension between China and the USA tightens the technology export controls in the west,giving the enterprises in China a hard time to acquire the key knowledge they urgently need.Moreover,the COVID-19 global pandemic has unstabilized the existing international supply chain,adding insecurity to the future of the industry.From a domestic perspective,as China’s economy is shifting from quantity-focused to quality-focused,it is in a critical stage to upgrade methodologies,optimize economic structures and convert growth momentum.Considered the practical significance and the profound impact of the equipment manufacturing industry,the quality of the development in this sector plays a crucial role in China’s quality-focused economic goal.This paper focuses on the high-quality development of the equipment manufacturing enterprises.Based on previous research,it gives a definition of high-quality development and builds a high-quality development index system with both subjective and objective weighting factors for quantitative measurement.The equipment manufacturing companies listed in SSE and SZSE during the period of2008-2018 are studied.Based on up-to-date development economics,the affecting factors and mechanism of the high-quality development of the equipment manufacturing enterprises are theoretically explained and empirically tested from the perspectives of the government and the market respectively,thus further suggestions regarding the industry are provided.This paper could be possibly innovative in the following ways.Firstly,it establishes a model to measure the level of the high-quality development of the enterprises and elaborates on the key factors of the government and the market by adopting an empirical approach,aiming to strengthen the micro-foundation of the high-quality development.Secondly,the index system of the high-qualitydevelopment is of great theoretical and practical significance as it covers not only the profound definition of the high-quality development but also a new situation of anti-globalization and the spread of COVID-19.Last but not least,empirical research is utilized to study the key factors of the government and the market,including but not limited to government subsidies,R&D funding,infrastructure,government intervention,the financial market and the labor market.The research gains significance by clarifying the transmission path of moderating and mediating effect.The research is conducted in the following steps:This paper defines some important concepts and presents the literature review.Firstly,it defines the equipment manufacturing enterprises and the high-quality development of the enterprises based on previous research.Secondly,it introduces the Marxist economics on quality issues and social reproduction,Schumpeter’s theories of economic development and innovation with regards to the high-quality development.Regarding enterprises development,it focuses on the theories of competitive advantage and enterprises capabilities.Besides,it goes back to Adam Smith’s thoughts of market mechanism,Stiglitz’s thoughts of government economic function and the theories of government role in evolutionary development economics when it comes to the effect of the government and the market.Enterprises development theories serve a theoretical base for the high-quality development index system while the theories of the function of the government and the market shed a light on concrete indicators of key factors on the high-quality development of the equipment manufacturing enterprises.This paper reviews the current situation of the equipment manufacturing enterprises in China by analyzing their advantages and disadvantages to prepare for subsequent research.In order to clarify the research approach,it further interprets the theoretical logic of the research on the high-quality development of the equipment manufacturing enterprises.Moreover,it establishes an index system of the high-quality development of the enterprises by not only quoting the classic theories but also insisting on the new development concepts.In addition,it focuses on the government and the market when it comes to the key factors of the high-quality development of the equipment manufacturing enterprises by adopting empirical indicators based on the analysis of new-generation development economics.Building a high-quality development index system for enterprises,it takes theequipment manufacturing companies listed in SSE and SZSE as the research object for measurement.The index system includes five first-rated indicators covering business performance,development ability,risk management,social responsibilities and environmental friendliness by grasping the essence of the high-quality development.The research aims to lay a foundation for empirical analysis by giving quantitative measurement to the high-quality development of the listed equipment manufacturing companies with both subjective and objective weighting factors taken into consideration.This paper analyses the key factors including government expenditure,infrastructure and marketization on the high-quality development of the equipment manufacturing enterprises.Selecting 3318 samples from equipment manufacturing companies listed in SSE and SZSE from 2008-2018,empirical testing is carried out to study the effect and mechanism of government expenditure,infrastructure,marketization by adopting different models.This paper summarizes the research conclusions and gives the countermeasures.The main conclusions are as follows.Firstly,there is a declining trend following rising after 2010 regarding the high-quality development of the equipment manufacturing enterprises in China,which differs in region and industry.In the second place,the sample-based study shows a U-shaped correlation between government subsidies and the high-quality development of the equipment manufacturing enterprises.It is currently in the phase of the left side of the U-shaped curve,which demonstrates a negative return.It is also found that enterprise elements play a moderating role between government subsidies and the high-quality development while the high-quality development of the enterprises is indirectly affected by R&D spending from government subsidies.Government R&D funding shows prominent effect in the high-quality development of the equipment manufacturing enterprises,which differs in quantity,region,enterprises type and size.The mediating models prove indirect effect on the high-quality development of the enterprises by government R&D funding via influencing R&D personnel and elements density.Different types of infrastructures demonstrate different roles in the high-quality development of the equipment manufacturing enterprises.The telecommunication infrastructure plays a positive role,which is not seen in the transport infrastructure.The positive effect shown in telecommunication infrastructureis due to enhanced enterprise elements density and R&D spending,proved in the mediating effect study.In terms of the level of marketization,the high-quality development of the equipment manufacturing enterprises benefits from less government intervention and a higher level of the financial market and the labor market.Specifically,the high-quality development of the equipment manufacturing enterprises can be promoted in two ways: reducing government intervention and enhancing financial marketization promote by improving enterprise viability and increasing R&D spending;a higher level of the labor market improves via influencing enterprise elements density and R&D personnel.Based on theoretical research and empirical analysis,suggestions are given from refining innovation policies,redesigning the layout of infrastructures and further reform of marketization.