Study On The Relationship Between The Economic Openness And Enterprise Productivity

Since the implementation of Reform and Opening-up Policy, China’s economy has developed rapidly. From 1978 to 2015, more than 30 years, China’s GDP has grown from $364.5 billion of 1978 to $67.6708 trillion of 2015. The average annual compound growth rate is more than 15%. At the same time, China has actively participated in international competition and the level of foreign participation has enhanced unceasingly. The total amount of foreign trade imports and exports of China has increased from 35.5 billion yuan to 24.59 trillion yuan in 2015. In recent years, as China’s enterprise is accelerating the pace of "going out" strategy, China’s foreign direct investment has grown rapidly. From 2002 to 2014, China’s foreign direct investment keep continuous growth for 12 years.But in the face of these achievements, China faces a lot of challenges. China’s foreign trade structure is unreasonable, the overall international competitiveness of export enterprise is not strong, the technology level of enterprises and the added value of products is still low. Exports and foreign direct investment companies tend to have higher productivity, but the higher productivity is brought about by the "learning effect", or the enterprises "self-selection effect"?For the in-depth study of "self-selection effect" and "learning effect", enterprise can choose the scientific and reasonable market behavior, properly open to the outside world, reasonably participate in the international division of labor and international competition, in order to improve enterprise’s production efficiency and profit level, more effectively improve the division of our country in the international industry chain.The relationship between productivity and export, foreign direct investment has been a focus of economics in the recent 20 years, economists have carried out a lot of theoretical and empirical research. Two explanations are generally "self-selection effect" and "learning effect"."Self-selection effect" refers to that in a heterogeneous trade theory, Melitz put forward the relationship between enterprise productivity and exports:after the enterprise enters the market, only the enterprises with higher productivity can come across the threshold of productivity. The enterprises with higher productivity can still make a profit after paying the iceberg fixed cost and transportation cost for export. And the enterprise with low productivity can choose to supply only the domestic market. That is to say that higher productivity of the export enterprise is the fact before export. Higher productivity is the reason why enterprises choose export, and exports are the result of independent choice of the export enterprises with higher productivity. "Learning effect" refers to that after exports or, foreign direct investment of enterprises, because of increased experience of export and foreign investment and the high demand of foreign market, the enterprises have learned knowledge and innovation, and improved the productivity. That is to say that higher productivity of the export enterprise is the fact after export. Higher productivity is the result of exports or foreign direct investment of enterprises, and exports or foreign direct investment is the reason why productivity of the enterprises is higher.This article focuses on the relationship between "learning effect" and "self-selection effect" and productivity of the enterprise, and mainly discusses the following problems:first, whether there is a "learning effect" and "self-selection effect" in China’s exports and foreign direct investment enterprises, if there is, how to measure the size of the effect? Second, whether there is a difference between "learning effect" and "self-selection effect" in China’s exports and foreign direct investment enterprises, if it exists, what the difference of the size of the effect? Third, under the premise of "learning effect", considering the heterogeneity of enterprises, whether there is a difference between the enterprises of different productivity levels to achieve "learning effect", if there is a difference, how to measure it?Specifically, first of all, this article reviews the existing literature, looks for the blank, lack and conflict of the study of the theory of the existing literature. It will become one of the breakthrough point of this article. Secondly, On the foundation of heterogeneous enterprise trade theory model of Melitz (2003) and Enterprise agglomeration model of Combes (2012), this paper introduces the model of Combes (2012) to the analysis of "learning effect" and "self-selection effect". This paper discusses a model of productivity distribution relationship of the local enterprises, export enterprises and foreign direct investment enterprises. Parameters of "learning effect" and "self-selection effect" are introduced into the model. So the "learning effect" and "self-selection effect" can be measured in a unified framework. This article has introduced three main parameters of productivity distribution function of different types of enterprise, namely translation, expansion, and the left-truncation. Thirdly, based on the industrial enterprises database data of 2005-2007 year, by using L-P method, this paper has calculated the productivity of the local enterprises, export enterprises and foreign direct investment enterprises. Fourthly, according to the model of the productivity distribution function of enterprises of different types, this article has constructed moments condition of the three parameters. By using Generalized Method of Moments (GMM), this article has estimated parameters of "learning effect" and "self-selection effect" of the local enterprises, export enterprises and foreign direct investment enterprises. Finally, according to the conclusion, this article put forward suggestions on our country’s foreign trade and foreign direct investment policy.The results show that "learning effect", overall, plays a significant role in China’s manufacturing industry, but "self-selection effect" is not clear. Furthermore, enterprises with higher productivity obtain more "learning effects", while enterprises with lower productivity get less "learning effect". Compared to export enterprises, foreign direct investment enterprises gain more "learning effects".