Research On The Effect Of Ownership Structure Of Foreign- Invested Enterprises On Export Product Quality

Foreign-invested enterprises are an important part of China's economy.They have been promoting the development of China's export trade and account for a large proportion of China's total exports.Compared with China's local enterprises,foreign invested enterprises also have an advantage in the quality of export products.In recent years,with the gradual relaxation of China's foreign investment policy,more and more foreign capital chooses to enter the Chinese market in the form of sole proprietorship.Starting from the current phenomenon of sole foreign investment,this paper incorporates the theory of property right economics into the research framework of export product quality,discusses the relationship between the ownership structure of foreigninvested enterprises and the upgrading of export product quality in China,and sums up the influence of ownership structure on the export product quality of enterprises and this shadow.The specific transmission mechanism is verified by empirical analysis.This study is of great significance to understand the production and development of foreigninvested enterprises,which helps to further enrich the theory of foreign investment and economic development of host countries,thus providing ideas for improving China's foreign investment management policies.Firstly,starting from the theoretical level,this paper emphasizes the importance of the reasonable choice of ownership structure to the production and operation of foreign investment enterprises,and collates the main methods for estimating the quality of export products,and sums up the main factors affecting the quality of export products.Secondly,this paper combines specific data to analyze the current situation of the development of foreign-invested enterprises in China,and finds that the newly established foreigninvested enterprises in China have a distinct trend of independent investment between 2000 and 2006.Therefore,this paper calculates and compares the differences of export product quality between different types of foreign-funded enterprises from 2000 to 2006,and draws the conclusion that the export product quality of wholly foreign-funded enterprises and foreign-controlled enterprises is higher than that of foreign-funded enterprises.Secondly,this paper elaborates the mechanism of the ownership structure of foreign-invested enterprises affecting the quality of export products,and puts forward the hypothesis that the proportion of foreign capital affects the quality of export products through technology transfer,human capital investment and export promotion effect.At the empirical level,this paper matches the database of Chinese industrial enterprises and the customs database from 2000 to 2006.Taking the ratio of the sum of Hong Kong,Macao and Taiwan's capital and the foreign capital to the enterprise's paidin capital as the index to measure the ownership structure of foreign-funded enterprises,this paper examines the ownership structure of foreign enterprises by constructing a fixedeffect model.It is concluded that the proportion of foreign investment in foreign-funded enterprises will have a significant positive impact on the quality of export products.This paper also investigates the difference of this effect by adding cross-terms,and finds that: the proportion of foreign capital in non-Hong Kong,Macao and Taiwan foreign-funded enterprises has a stronger effect on product quality than that in Hong Kong,Macao and Taiwan foreign-funded enterprises;the proportion of foreign capital has a stronger effect on the quality of general trade products than that of processing trade products;and the proportion of foreign capital has a stronger effect on product quality than that of processing trade products.Compared with the products exported to high-income countries,the product quality promotion effect is stronger than the products exported to low-income countries.On the basis of guaranteeing the stability of regression results,this paper examines the influence mechanism of ownership structure on the quality of export products.The proportion of foreign capital will have a positive impact on the quality of export products by improving the productivity,labor level and export intensity of enterprises.Finally,according to the results of empirical research,this paper puts forward corresponding policy recommendations for enterprises and governments,so as to provide assistance for upgrading the quality of export products of our enterprises.