The Impact Of Brexit On The Investment Activities Of Chinese Export Enterprises

On June 23,2016,the British referendum decided to leave the European Union.This "black swan" incident brought great uncertainty to the world economy.The stable trade situation began to be bewildering.China is the largest trading country in the world,the uncertainty of trade policies after Brexit must make an impact on Chinese export enterprises.Based on the perspective of trade policy uncertainty,this article studies the impact of the Brexit on the investment activities of Chinese export enterprises.This article firstly systematically sorted out the literature on the relationship between trade policy uncertainty and enterprise investment.Based on real option theory,financial friction theory,etc.,using PSM-DID method,this paper study the impact of rising trade policy uncertainty on the investment of China's export enterprises from the three aspects of investment scale,investment efficiency,and investment types.Through empirical research,this article shows that(1)after the Brexit event,the rise in trade policy uncertainty has had a negative impact on the scale of investment by export enterprises,which has inhibited the expansion of the scale of investment by companies;(2)Although the rise of uncertainty in trade policy has inhibited the scale of investment,it has promoted the improvement of enterprise investment efficiency;(3)In terms of enterprise fixed asset investment,the increase in trade policy uncertainty after the Brexit event has been suppressed Fixed assets investment of exporting companies;(4)As far as financial asset investment is concerned,the rise in trade policy uncertainty after Brexit has also had a negative impact on the financial assets investment of exporting companies;(5)unlike other types of investment,the increase in the uncertainty of trade policy after Brexit has positive incentives for R&D investment activities of export enterprises.Based on the perspective of trade policy uncertainty,this article explores the impact of the Brexit incident on the investment activities of export companies,and also provides a reference for export companies to deal with the risks of trade policy uncertainty brought about by inverse globalization and emerging trade protectionism.And reference,it provides theoretical support for enterprises to formulate reasonable investment strategies.