An Empirical Study On The Influence Of China's Outward Foreign Direct Investment On The Quality Of Its Export Products

On the basis of sorting out relevant literature on OFDI and export product quality,this paper expands the research on the impact of Chinese OFDI on its export product quality.First,the economic connotation of export product quality is clarified.Export product quality refers to another important factor in addition to the level of income of consumer,product price and preference of consumers.It not only depends on the technical level of production on the supply side,but also on the degree of satisfaction of consumers on the demand side.It is an endogenous factor determined by the supply and demand system of the product market.Second,using the 4.72 million pieces of trade data in the UN Comtrade database,the quality of 4315 products exported from China to more than 200 countries and regions during 2003-2017 was measured by inverse method.The results show that:(1)The quality of China's export products is at a moderately low level,but it is slowly rising in fluctuations;(2)The quality of China's export products in resource-intensive and capital&technology-intensive industries is at a relatively high level,while the export product quality of labor-intensive industries is at a low level;(3)The quality of China's export products is still far from the United States.Third,an econometric model was used to analyze the impact of Chinese OFDI on the quality of its export products.The general factors affecting the quality of a country 's exports include objectively the supply side of the exporting country,the demand side of the importing country and the international economic environment.The important influence on the demand side of the importing country is not considered.This paper improves the existing research methods and constructs an econometric model that includes the above three factors.The estimated results of the model show that:(1)On the whole,China OFDI has a significant inhibitory effect on the quality of its export products;(2)The results obtained after the panel tool variables are used to deal with the endogeneity of the model are consistent;(3)China 's OFDI in middle and high income countries has a significant inhibitory effect on the quality of its exports,while OFDI in low-income countries has no significant effect;(4)The OFDI stock was divided by the labor force of each country as the new OFDI proxy variable,and the results showed that the model was robust.Fourth,in addition to OFDI,other factors affecting the quality of China 's export products include:(1)The factors that inhibit the improvement of the quality of China 's export products are the economic scale of the importing country,the economic crisis,the potential for China 's income growth and the R&D;(2)The factors that promote the improvement of the quality of China's export products are trade costs,China's economic growth potential,total factor productivity and industrial upgrading;(3)The increase in per capita GDP of high-income countries has a significant impact on the improvement of the quality of China's export products,while low-income countries have no significant impact.Based on the above conclusions,suggestions are put forward:(1)Investment in developed countries should focus on technology spillover to domestic enterprises;(2)To optimize inter-enterprise cooperation;(3)Encouraging enterprises increase investment in knowledge &technology-intensive industries;(4)To prevent overseas investment risks.