Research On The Effectiveness Of Government Subsidies On The Export Of Anhui Enterprises

As one of the engine of economic development, the rapid economic growth has been driven by the leap-frog economic development of export in Anhui. While sustained growth in exports has a very close relationship between a series of promote exports policies of government. As transfer payment of government to businesses, government subsidy also an important part of the export promotion policies. With the continuous improvement of fiscal revenue, all levels of government in Anhui province has been transferred financial subsidy to the enterprise in deepening coverage and support. As the representative of export promotion policies, people pay more and more attentions to acquaint the influence of government subsidy to enterprises export.To analyze whether the government subsidy play a positive role in promoting export activity of enterprises in Anhui province, and based on the industrial enterprises micro-data in Anhui Province from1998to2011, This article firstly analyze the typical facts of government subsidy impact on export activity, and then preliminary analyze the relationship between government subsidy and enterprise export activity by using the OLS method and logit model. Based on the correlation results, and overcome the endogeneity problem by the propensity score matching method and difference-in-differences model, further analyze the causal relationship between government subsidy and enterprise export activity in Anhui province. Meanwhile, this article focused on export decision-making and export intensity, so as to provide theoretical and empirical evidence for the implementation of the policy.The conclusions showed that:Firstly, as the abundant labor resource province, labor-intensive enterprises have more comparative advantage for export options. With respect to the labor-intensive enterprises, capital-intensive enterprises while easier access to government subsidy. High technology enterprises and manufacturing enterprises are granted higher subsidy probability and the share of export. State-owned enterprises and foreign-invested enterprises have an absolute advantage in subsidy probability, but state-owned enterprises has much lower proportion of exports than foreign-invested enterprises and Hong Kong, Macao and Taiwan enterprises. In addition, incorporated enterprises and private enterprises as a major component of industrial enterprises in Anhui Province, the number of enterprises accounted for68.93%, but the proportion of subsidies and export ratio much weaker.Secondly, between the government subsidy and export behavior not only exists significant correlation, but there is still a significant causal relationship, that is, government subsidy to promote potential export companies to make decisions to export, but also to make the reign export enterprises to enhance their export intensity.Thirdly, empirical results of PSM method show that subsidized and non-subsidized group have11.5percent gap in average treatment effect (ATT) by solving the self-selection issues, is lower than19.8%by OLS method. Treatment group and control group show a significant difference in export decisions, government subsidy can bring about the desired export promotion effect, and also show that PSM method is more accurate estimate the causal effect for government subsidy on the export decision, and government subsidy has significant contribution on export decisions of industrial enterprises of Anhui province.Lastly, using the difference-in-difference model to examine the government subsidy on export behavior and to compensate for PSM method does not eliminate the unobserved factors. On the one hand, reflected in government subsidy for export decision-making:government subsidy on the contribution export decision-making of Anhui province was gradually deepening trend before "Entering WTO", but turning to weakening effect after joining the WTO. Besides, the government subsidy has enhanced the exports effect temporarily in2008. On the other hand, government subsidy plays the role of enhance the export intensity export, which dynamic trend is the same as its decision-making, but the contributions is lower than the latter. Overall, government subsidy contributes to export decision-making and export intensity positively, and meet the basic conclusion of PSM method. In other words, government subsidy produces a positive role in promoting export behavior of industrial enterprises of Anhui province.Policy implications that, within the framework of the WTO, actively use the government subsidy to promote potential export enterprises and export enterprises expanding trade activities. Moderately lower super national treatment to foreign investor enterprises, and really emphases on export promote policies and improve support efforts in private enterprises and corporate enterprises. Perfect the subsidy allocation system of rules and increasing export promotion effect.