Research On The Effects Of OFDI To Chinese Export Products Quality

After the adoption of open up policy,the scale of China’s foreign trade has reached new highs repeatedly,and now it ranks second in the world.However,the international market competitiveness of China’s export products is still relatively low.With the further deepening of reform,the marginal effect of export scale driving economic growth has been gradually diminishing.Improving the quality of export products and enhancing the international market competitiveness are the core of China’s opening up.This paper matches Industrial Enterprise Database,Customs Import and Export Database,and List of Overseas Investment Enterprises from 2001 to 2006,and studies the influence of OFDI on export product quality of Chinese enterprises from the perspective of micro enterprises.In terms of product quality construction,this paper uses the supply and demand information method of Feenstra&Romalis(2014),yu miajie and zhang rui(2017)for reference,and comprehensively considers both supply and demand factors,so as to more accurately measure the quality of export products.In the empirical aspect,based on the pseudo-natural experiment and counterfactual thought,this paper screened out suitable control group enterprise samples through the mahalanobis distance matching method,which could effectively reduce the selection bias,and then explored the influence of OFDI on the quality of export products from multiple perspectives.The findings are as follows:First,from 2000 to 2006,the quality of China’s export products as a whole presented a w-shaped trend;Second,on the whole,OFDI has a significant impact on the quality of export products.At the same time,the more OFDI,the longer the investment period,and the more obvious the promotion effect on product quality;Third,OFDI of different host countries and investment motives have different effects on product quality,among which OFDI of high-income countries and non-tax havens has a significant positive impact on product quality,and local production and technology R&D OFDI have the most obvious promoting effect on product qualityFinally,some suggestions are put forward on the basis of the research conclusions.First,continue to increase the scale of OFDI to improve the quality of export products is the key to maintain the international competitiveness of Chinese enterprises under the new situation,and is also an important way to drive China’s sustained economic growth;Second,encourage enterprises to increase OFDI to developed countries and rapidly improve production technology through"learning effect"and"competition effect";Third,the proportion of technological R&D and local production OFDI can be appropriately increased.