Research On The Impact Of Institutional Heterogeneity On Chinese Enterprises’ Multinational Operation Decisions

In our implementation of the "going out" policy at the beginning, state-owned companies dominate the China’s foreign direct investment and export activity, especially those who responsible for the national investment strategy, most of the foreign economic activity implemented by the large state-owned enterprises,, with the scale of investment increased and driven by investment income, more and more private enterprises also began to participate in. And the choices of enterprise foreign direct investment or the export decision subject to the influence of many factors, such as bilateral trade policy and the size of the market, but the enterprise system difference is often used as external factors and join in related research, therefore, in this paper, the heterogeneity of the enterprise system was seen the endogenous factor to the impact of foreign direct investment or the export decision.Past literature gives dual interpretation on firm heterogeneity of meaning, the first is the classic literature of enterprise productivity differences; followed by the heterogeneity of enterprise system, especially in some economies in transition in developing countries or regions, some enterprises can use some imperfect in the market economic system, to achieve some system level bonus further more. Therefore, at the institutional level they have won the competitive advantage relatively.In this paper, through the establishment of the Binary Choice model of export and investment of an enterprise, and the use of probit regression, the enterprise exports and investment decision impact model, and the data of 3rd season China in 2015 manufacturing enterprises 210 enterprises have export or foreign direct investment behavior, the empirical test on the factors affecting foreign manufacturing industry show the results that the tendency of investment or exports, institutional differences of international expansion decision of enterprises played a decisive role in different levels, but the difference is mainly in the form of the ownership system, the depth of embedded system brings a completely different competitive advantage for the enterprise, the closeness of the relationship between enterprises and government have a direct impact the total factor productivity of enterprises, and further affect the expansion of foreign enterprise decision-making.