The Research Of Export Product Quality Of China’s Textile Based On Enterprise Heterogeneity Model

Export quality, it decides international competitiveness and ability to scale of industries, and it also is the important breakthrough point to become power trading for China’s textile trade.First of all, from the aspect of theoretical analysis, it breaks the traditional hypothesis of enterprise heterogeneity model by incorporating export quality as one of represent of heterogeneity, thus it finds the reason of low-end locking is that the promotion of export quality affects enterprises’ revenue negatively in the short-term, however, in the long-term, enterprises’ revenue will boost with upgrade of export quality. Based on this expanding of theoretical model, the analysis of influence factors points that GDP and population of import countries and productivity of export enterprises will enhance export quality; besides, FDI effects export quality shows U trend, only if product quality of export countries reached a certain level, FDI would facilitate promotion of export quality.Secondly, based on the measure frame of Hallak&Scott, it improves the equation of quality upgrade to calculate import textile quality of20countries from1992-2013. It shows that import quality of Hong Kong is way higher than other countries. Due to historical connection between Hong Kong and China and Hong Kong’s nature of transit port, the great majority of demand from Hong Kong is from other countries, consequently, it eliminates Hong Kong’s data in the empirical analysis.Thirdly, it uses panel data of19countries of22years to test influence factors of export quality of China’s textile trade, and the results reveal that all of GDP and population of import countries, productivity of export enterprises and FDI boost the promotion of export quality. Nevertheless, it’s better to focus on import countries rather than overflow effect of FDI for upgrading quality effectively. These are available to help China’s textile enterprises make decisions of producing, financing and trade trend for enhance international competitiveness.