Research On Trade Structure And Choice Of Foreign-owned Investing Enterprises Basing On Ownership Differences

Since China implemented the reform and opening up policy,the total investment value of FDI into China increased year by year and contributed greatly to the rapid growth of Chinese economy by means of trade creation and technology spillover.FDI enterprises plays very important role in China's trading with other nations and almost 40%international trade volume was created by them,and the trade structure of China changed according to decisions of foreign joint ventures.With the increase of degree of openess,over 90% of foreign investment chose to operate in the mode of foreign owned enterprises or joint ventures.At the same time,the trade volume of these two modes take over 98% of total FDI in China,thus directly decide the formation of market structure,product structure and the structure of mode of trade.However,the trading structure and the choice of decision making system did not attract sufficient attention of the academic world,thus the policy making system in China is left behind to certain degree.This dissertation choose the trade structure of foreign business with different ownership to take in-depth analysis,which not only helps to contribute to heterogeneous enterprises trade theory,but also helps to enhance Sino-foreign coordination for Chinese trade policy making process.On the basis of summarizing foreign direct investment and trade pattern formatting theory of multinational corporations,the dissertation analyzed the investment volume of FDI into China and the trade volume,market structure,product mix and changes in structure of mode of trade with the help of macro national,regional and industry together with the data of individual business.The dissertation focused on the unique choice of foreign-owned business joint ventures in the fields of market,product and mode of trade,and discovered the relevance of the ownership of foreign owned enterprises and the formation of trade patterns.The ownership structure offoreign business is influenced by China's institutional environment,industry and regional development,and the quality structure of factor,which has the characteristics of time,region,and industry.On basis of the heterogeneous enterprise trade theory,the dissertation argues the ownership structure influences the heterogeneity of firm,and then drives the firm to make self-interested trade structure choices.To maximize profits,the firm will reverse the ownershipstructure to strengthen its trade structurechoices.In order to test the existence of the causal relationship,the dissertation established multiple regression econometric model and chose the panel data of?Chinese industry enterprise database?and?Database of the Customs?to examine the relationship among business factor,industry factor and the investment regional factor and the market structure,exporting product quality structure and the positioning of global value chain of FDI enterprises with fixed effect estimation method,and get the following conclusions:(1)Difference in ownership system leads to firm heterogeneity,and this change is the key factor of enterprises' trade pattern.Joint ventures with higher productivity efficiency and caliber efficiency tend to form better trade patterns which can satisfy the adjustment objectives of China's trade pattern.(2)The clustering of poor-efficiency foreign owned enterprises limits the horizontal integration of foreign investment.The key reason for the difficulties in industry and regional transformation in east part of China is that foreign enterprises with low efficiency and low product exclusive production efficiency piled up in that area.(3)the inefficiency of caliber efficiency of foreign limits the further upgrading of exporting product quality.Due to the lack of research and development input,the foreign owned enterprises tend to export the lower quality products and occupy the market with lower price.(4)The clustering of high efficiency joint ventures can help the global value chain to be more reasonable.Because the ability of integrating domestic resources of joint ventures are higher than that of foreign owned enterprises,so the joint ventures with higher caliber efficiency can find their places in global value chain with the mode of general trade.In order to realize the transformation and upgrading of Chinese trade structure and promote the progress from “big trading nation” to “strong trading nation”,we suggest that in the formation process of further absorbing foreign investment,China should consider the changes in business productivity efficiency and caliber efficiency due to the choice of different ownership and adjust the cluster level of foreign investors in their FDI industries and regions in China,and promote the coordinative development of FDI in China and optimization of trade structure in China.