The Impact Of Government Subsidies On Enterprise Exports: Evidence From China

Economic Globalization has made international market competition much fiercer,and the pressure for export-oriented companies' survival is increasing.With the development of the "Going Global" strategy,the degree of internationalization of Chinese enterprises has developed rapidly.Chinese government has played a vital role in the process through direct and indirect methods.First of all,the article summarized and analyzed the current situation of China's imports and exports and the current state of government subsidies on exports enterprises.Secondly,this paper selected the panel data from the merger of the China Industrial Enterprises Database and China Customs Database from 2000 to 2006,and used a Two-way Fixed Effect Model to study the impact of government subsidies on corporate exports,combined with the control scales of enterprise size and other factors.In addition,focused on enterprise size,ownership,east-middle-west region,and high-middle-low marketization,the paper conducted heterogeneity tests.The empirical results showed that the current and previous government subsidies would have a significantly positive impact on the current export of Chinese companies.Apart from that,the factors such as the size,age,the profit rate,and the capital-labor ratio also had a positive impact on the export of the company.Government subsidies have a more significant impact on large-scale enterprises,private enterprises,east-area enterprises,and high-degree marketization enterprises.On top of that,this paper made a series of robustness tests on the model,and the test results showed that the results were robust.Aside from the above conclusion,analysis of the influence mechanism showed that government subsidies also had a rather positive impact on corporate R & D innovation,corporate Intermediate Input,and corporate Total Factor Productivity.Finally,from the perspective of the government and the enterprises,the paper made specific and targeted policy recommendations on improving the actual effectiveness of government subsidy distribution and promoting corporate exports.