Research On The Effects Of Government Subsidies On Enterprise Performance And Export Trade

Chemical industry is an important basic industry of the national economy, is an important support to achieve the industrialization and also a fund, technology, energy intensive industry thus plays an important role in the domestic economy and social development. With the further development of international trade, the chemical industry in our country increasingly highlight the disadvantages in extensive development, mainly displays in the following points: the international trade friction increasing impact on export seriously; chemical products capacity expand too fast, and lead to homogeneity and low-end problems. To get rid of the chemical industry development trouble, our countries invest a lot of subsidies to chemical companies to help expand its exports, improve the product price competitive advantage in international trade and expand its market share. But the influence of the government subsidies have positive effect, negative effects and no effect, so the effect is unclear.In order to investigate the effect of government subsidy, this article first summarizes the theory of literature between the government subsidies and business performance, export trade. But, we found that the current research for the chemical industry is less. Because the government subsidies include domestic support and export subsidies, and domestic subsidies mainly affect business performance, export subsidies affect enterprise’s export trade. But the current government subsidies is not comprehensive, and the research has certain defects. Based on the above defect about these researches, this article research the influence of government subsidies all-sided, and this article further combs the current chemical industry policy from the perspective of production control and adjustment of industrial structure. Also for chemical industry scale, structure and extent of government subsidies for statistical analysis. Found that chemical industry policy is in the adjustment, for example eliminate backward production capacity,and optimize the industrial structure become the core of the policy guidance. At the same time, the government subsidies for key enterprises is in increasing, and export subsidies continue to increase. But considering the effect of government subsidy effect having certain uncertainty, government subsidies will mainly affect the operating performance of enterprises and export trade. Therefore, this article build the empirical model of overnment subsidies and operating income, government subsidies and export trade income, then do the corresponding measurement regression.In this article, the empirical results show that the tax return, government subsidies, export tax rebates can significantly promote the main business income, government subsidies, export tax rebate and export revenues are related. It suggests that the government subsidies are more advantageous to expand our export scale and increase the trade income. But the tax returning and export income regression coefficient is negative, and it suggests that export income and tax return is certain substitution effect. For different types of enterprises, the influence mechanism of government subsidies exists certain differences. The influence of government subsidies for main business income and export income effect of private enterprise is not obvious. Based on the above empirical regression results, the government needs to regulate export system and adjust the subsidy policy, industry association need to establish effective early warning mechanism and change the function of association, chemical enterprises need to joint restructuring and upgrading of technology, and develop the market diversification.