Research On The Impact Of Imports On Corporate Performanc

Since the reform and opening up,China’s manufacturing industry has made great progress.However,in recent years,Chinese enterprises have encountered many obstacles on the road of technological upgrading.One of the obstacles is the insufficient technical level of core parts in the upstream industry.The supply chain mainly depends on imported products.Due to the vertical spillover effect of the industrial chain,upstream industry imports affect the performance of downstream enterprises,and downstream industry imports also affect upstream enterprises.In the situation of economic anti-globalization,a large number of foreign technologies reduce the autonomy and controllability of China’s manufacturing supply chain.Based on the micro data at the enterprise level,this paper analyzes the spillover effect of upstream,middle and downstream industry imports on all manufacturing industries in China.It is hoped that through this micro empirical analysis at the level of industrial chain,this paper explains the importance of upstream and downstream industry import,and causes the industry and the government to pay attention to the industrial chain supply chain.The development of China’s industry is the epitome of the catching up and surpassing of the industrial countries.In the late 1970 s,China has very limited production capacity.While China had become the second largest economy in the world in 2010.China’s industry has completed great development in only 30 years.During this period,Chinese industry has shown strong assembly capacity and weak production capacity of parts.Today,a large number of key parts still dependent on foreign countries.From the perspective of industrial chain,upstream,middle and downstream enterprises import foreign advanced technology products at the same time.Studying single enterprise’s import on trading enterprises cannot fully reflect the impact of import.It is more comprehensive to analyze the upstream,middle and downstream industry imports on the performance of all manufacturing enterprises.This paper first reviews the development of China’s import trade,then empirically analyzes the impact of the upstream,middle and downstream industries’ import on all manufacturing TFP and trading enterprises in China,and explores the underlying mechanism.Finally,through the case analysis of the automobile industry in China and Japan,it comes to the importance of the import of upstream and downstream industries in the development of vehicle enterprises.This paper is divided into eight chapters,and the main structure is as follows:The first chapter is the introduction,which explains the background and significance of the topic.Then it lists the research framework and introduces the research ideas and methods.At last,it points out the key and difficult points,innovations and shortcomings of the research.The second chapter is the literature review,which comments on the relevant literature.It contains the studies of import and enterprise productivity,import and enterprise export,and industrial correlation affecting enterprise performance.Then it points out the marginal contribution of this paper.The third chapter reviews the development history and current situation of China’s import trade.It also analyzes the changes of the import proportion of products with different technical content.And it lists China’s position in the world import trade.The fourth chapter establishes a simple theoretical model of upstream and downstream enterprises.When downstream enterprises expand imports,upstream enterprises avoid competition by improving product quality and product innovation.The fifth chapter analyzes the impact of import trade liberalization in upstream,midstream and downstream industries on enterprise TFP from 1998 to 2007.We mainly use OP and ACF methods to calculate the TFP of Chinese manufacturing enterprises.It is found that the growth of TFP of non-trading enterprises and trading enterprises tends to be the same in the past 10 years.The gap between them is significantly narrowed.Through empirical regression analysis,we find that firstly,the imports of upstream industries and this industry significantly promote the improvement of enterprise TFP.While the imports of downstream industries have a negative impact on enterprise TFP.Secondly,from the perspective of action mechanism,the trade liberalization of upstream industries has improved the technology and innovation of the industry in which enterprises are located,thus improved the TFP of enterprises.The import of downstream industries inhibits the improvement of enterprise TFP by hindering the growth of enterprise technology and product innovation.Thirdly,from the perspective of enterprise ownership,the imports of upstream industries and middle industry mainly affect private enterprises and state-owned enterprises,while foreign-funded enterprises are not significant.The decline of tariffs in downstream industries has significantly increased the TFP of state-owned enterprises and restrained the growth of TFP of foreign-funded enterprises and private enterprises.Enterprises with high-tech gap can benefit more from the import of upstream industries.The import of downstream industries has less competitive effect on them.In Chapter 6,we further discuss the impact of upstream and downstream industry imports on the export of Chinese trade enterprises.The empirical analysis shows that,firstly,imports from upstream industries significantly reduce the production cost of enterprises,improve the types of export products,and promote the expansion of export scale.Imports from downstream industries make enterprises change from multi product export to single product export.Then this inhibits the growth of enterprise export scale,but improves the quality of enterprise export products.Secondly,from the perspective of action mechanism,upstream industry imports have a positive spillover effect on enterprise exports.Upstream industry imports can alleviate enterprise financing constraints and improve enterprise R & D investment,so as to expand the export scale.The import of downstream industries reduces the R & D investment of enterprises.This inhibits the export growth of enterprises.The higher the market concentration of the industry,the more the cost effect of upstream industries caused by imports can be transferred to the industry.Finally,from the perspective of ownership enterprises,the vertical spillover effect of imports from upstream and downstream industries has the most significant impact on private enterprises.The foreign-funded enterprises and stateowned enterprises are much less.Low efficiency enterprises can benefit more from the import of upstream industries.And high efficiency enterprises can resist the import competition of downstream industries.The effect of competition evasion to the high efficiency companies is greater than that of competition crowding out.In Chapter 7,by combing the development of the automobile industry,we find that the automobile industry mainly depends on imports of key technologies and equipment.Upstream mineral resources and downstream energy consumption are also relied on foreign countries.The key parts of China’s automobile production are greatly depended on countries such as Japan and Germany.The safety of China’s automobile industry chain is still weak.After years of development,Chinese cars’ qualities have greatly improved and won half of the mainland market.While Chinese international competitiveness is not only lower than that of advanced car producing countries such as Germany,Japan and the United States,but also lower than that of emerging countries such as India and Mexico.The technical development level of China’s auto parts industry is relatively low.This further restricts the development of independent brand vehicles.By comparing the industrial policies of the automobile industry of China and Japan,we find that China’s restriction on parts import and attracting foreign investment are the main reasons for the backward of the automobile parts industry.