The Impact Of The Financial System Reform Of "County Directly Administered By The Province" On The Quality Of Enterprise Export Product

China has gradually implemented the fiscal system reform of "provincially administered counties" since 2002 to promote the economic development of counties.This paper regards that reform as a nature shock and explores the impact on product quality by collecting the county level data from 2001 to 2007.By using difference-in-difference model,we found a positive effect of the reform on the enterprises export product quality.Considering about enterprise heterogeneity,we divide our sample with various standards such as size?factor density?trade type?ownership type.The result indicates that:the influence of the reform strengthen as the size of enterprises grows,and the top 1/3 enterprises are most affected.As for factor density,the positive effect in technology and labor-intensive enterprises is more significant,however,there's no significant appears in capital-intensive enterprises.General trade and processing trade enterprises both gain upgrade on product quality.Faced with different degree of financing constraints,the impact on the private and foreign enterp rises is much more significant,compared with state-owned and collective enterprises.To explain the effect path of this nature shock,we choose four kinds of mediation variable:tax,subsidies,financing constraints and the level of economic development.We found that the reform impact on the quality of export products by reducing tax burden?easing financing constraints?stimulating economic development.While the mediating effect of subsidies is not obvious.