A Research On The Impact Of Import And Export Trade On Business Innovation

After two World Wars, the international economic structure has changed a lot, so as the rapid economic development of the United States, Japan and some other Newly Industrialized Countries such as the Asian Four Tigers, and all those have been caused by the open environment, the market policies and the high level of technology innovation. So currently, in order to participate in global competition, how to conduct international trade and improve the technological innovation capability, has become an important issue to many developing countries or regions. As an important Micro-body of the national economy, the overall development level of the microscopic individuals reflects a country's overall economic entity and competitiveness. So doing the research on the impact of trade practices choice on firm enterprise innovation capacity, not only do good to the individual business, but also has a significant and far-reaching effect on improving the country's trade policy and its technology level.Based on theoretical model setting up by Melitz (2003), this paper builds a theoretical model on Import and Export trade behavior affecting the level of innovation of the enterprise in the year of 2005-2007 of the Chinese Industrial Enterprise and Customs Database, then in order to draw more accurate conclusions, this paper makes an empirical research with the help of PSM (Propensity Score Matching Model) method, this method is used to minimize the sample selection bias and endogeneity premise. By doing this, we find that:(1)In the observation period, the Two-way (import and export at the same time) enterprise behaves better in a number of characteristics than just a One-way (just export or just import) enterprise;(2)After controlling some variables which affect the trade choice and business innovation(matching variables), the Two-way Trade choice plays a significant positive role in promoting enterprise innovation, and the conclusion is not affected by the matching methods, what's more, has a relative stability;(3)The sub-sample test shows that:in three sub-industry enterprise belongings, the influence on the mechanical behavior of electronic innovation causing by the Two-way Trade choice is greater than the textile manufacturing and resource processing industry; similarly, in firm size categories, the influence on the big companies'innovation causing by the Two-way Trade choice is bigger than the small businesses and medium-sized enterprises.Thus, this paper demonstrates the support of the balanced development strategy of China's Import and Export Trade. On the one hand, the Chinese government, in the formulation of trade policy, should pay full attention to the balance of trade development strategies, and not just only encourage enterprises to export, but also pay attention to the important role of imports of the enterprises, and distinguish different policy orientation arranging from different industries to different scale enterprises; on the other hand, as for just export or just import enterprise, should be fully aware of the important role of the Two-way Trade behavior plays in prompting business innovation, and think highly of the Two-way Trade decision.