Research On Influences Of Export Fixed Costs And Financing Constraints On Export Product Quality Of Enterprises

The product quality of export enterprises has become one of the main factors influencing Chinese sustained economic growth and trade transformation.Chinese enterprises are influenced by heterogeneous export fixed costs and financing constraints,resulting in more complex mechanism for product quality control.In order to understand the factors influencing product quality,this article reviews the domestic and international literature about product quality.On the basis of these studies,under the framework of the theory of heterogeneous corporate trade,this study focus on the effect of heterogeneous export fixed costs and financing constraints on the product quality of export enterprises from the financial market environment in which Chinese enterprises are located.In the empirical research,the docking data of the Industrial Enterprise Database from 2000 to 2006 and the China Customs Database are used to analyze the effect of export fixed costs and financing constraints on product quality including Chinese export enterprises with 11 countries and regions including the United States and Russia.In addition,the empirical analysis also conduct based on corporate ownership,geographic regions,and trade patterns,respectively.The conclusions of the research are as follows:(1)Export fixed costs have a significant negative impact on product quality of export enterprises,and the increase of export fixed costs limits the level of product quality for exporting.(2)Financing constraints is a significant factor limiting the product quality of exported enterprises.The enough intrinsic funds of the enterprise or the less constraints of bank credit financing effectively promote the product quality of exporting enterprises.(3)Export fixed costs of large state-owned enterprises have a slight negative impact on product quality.Private companies,Sino-foreign joint ventures,and foreign-owned enterprises have a higher dependence on export fixed costs for export product quality.The state-owned enterprises have sufficient internal resources and have less dependence on bank credit comparing with others.Private enterprises are significantly constrained by internal sources of funds.Adequate internal funds significantly improve the quality of their product.(4)The product quality of exporting enterprises of processing trade depend more on the export fixed costs,and are more vulnerable to the problem of shortage of funds.(5)The negative impact of export fixed costs on product quality in the east China is stronger than the firms in the central and west China.The influence on product quality of fixed costs in the central and west China is basically the same.The product quality of enterprises in the east China is significantly constrained by bank financing,and it is not significant effect in the central and west China.Finally,the article from three aspects put forward policy suggestions to improve the export product quality: more ways to effectively reduce the export fixed costs,deepen the financial reform to broaden the financing channels,encourage enterprises to improve the export product quality.