How Institution Affect The Quality Of Chinese Export Products

In recent years, with the study on trade issues in more depth, the impact of the institution on international trade began to receive widespread attention, the institution will have a decisive impact on a country’s trade scale and pattern. the theoretical basis of the institution affect trade is the new institutional economics.Recent research in international trade has focused on the sources of export growth.Export growth is reflected in the improvement of export quantity and export quality,the paper mainly study the issues of export quality.This paper draw institutional factors into the analysis framework of export products quality based on Franq(2011)’s method. So far, China’s export has leapt to the first in the world.The study about institution analysis of Chinese export quality has important significance on the improvement of export structure.This paper decomposes the institution into four index, include the efficiency of the government, regulatory quality, the control of corruption and the rule of law,using the data of institution index from the World Bank Database in 1996-2012 years,apply the gravity model of trade, make a series of empirical research,including the overall research, the research of developed and developing countries and the research of product type.The main conclusions are as follows: except the corruption control the other three index affect the export quality is positive. Improving the efficient of government, improving the regulatory quality, improving the rule of law,all can reduce the trade cost, promote trade, improve the export quality.Then this paper in the developed and developing countries are tested on the empirical results,the developing countries is more significant than the developed countries, this may be related to the different types of export products. Finally this paper divided export products into five categories, there is different affect on different products.Finally,the paper put forward some policy recommendations from the perspective of the institution improve the quality of export products.