The Impact Of Productivity And International Operations On The Survival Of Enterprises

Since the reform and opening up,China's economic growth is rapid,and achieved great success.From the aggregate view,China is already the world's second largest economy.From the growth rate view,the economy maintained a high growth year round.In recent years,due to the impact of the economic crisis and the structural problems of our economy itself that has long existed,economic growth has slowed,into the "new normal" phase.In this process,economic growth will switch from high-speed to medium and high speed,economic restructuring and optimization will occur,there will inevitably be some pain.The enterprises play an important role in the process of economic transformation and upgrading.Enterprises are the main source of employment,and also the main place to create value.Healthy development of enterprises is an important guarantee for the steady progress of the national economy.Thus,the inquiry of some of the important factors that affect the survival and development of enterprise in the new era is of great practical significance.Start from the micro-enterprise,this article explores the impact of TFP and international operation of enterprise on enterprise survival.351729 enterprise micro panel data from year 2004 to year 2007 were chosen.Cloglog model of survival analysis were used to empirically explore the potential impact of TFP and international operation of enterprise on enterprise survival.Empirical studies have shown that higher TFP can improve the probability of survival of enterprises.Export can increase the probability of survival of enterprises.While foreign direct investment would decrease the probability of survival of enterprises.As international operation may play a role in regulating the relationship between TFP and the survival of the enterprise,interaction term of export and TFP,interaction term of OFDI and TFP were both added in the original model to study the regulatory effect of the interaction term on relationship between firm productivity and enterprise survival.The empirical results indicate that export has a negative effect on the relationship between TFP and enterprise survival,OFDI has a positive effect on the relationship between TFP and enterprise survival.