Outward Foreign Direct Investment?enterprise Innovation And Firm's Markups

In recent years,China's foreign investment flows and stocks continue to be at the forefront of the world.Foreign direct investment of enterprises can bring unique cross-border resources,which can effectively affect the innovation activities of enterprises,and then promote the competitiveness of enterprises.The pace of economic globalization is irreversible and will continue to develop in depth.According to the current international and domestic situation,it is of great practical significance to deeply explore whether the foreign investment of enterprises can improve the firm's markups and study the role of innovation in it.This paper mainly uses the empirical research method,starting from the new trade theory,scale economy theory and reverse technology spillover theory,to explore the theoretical basis and mechanism of the impact of foreign investment on enterprises.This paper selects A-share listed companies in China from 2009 to 2018 as the sample,and takes the firm's markups as the proxy variable of the international competitiveness of enterprises.Based on the trend score matching method and the double difference model,this paper empirically analyzes the relationship between enterprises' foreign direct investment and the firm's markups.With the help of intermediary effect model,this paper explores the intermediary role of enterprise innovation in FDI and firm's markups.The results show that enterprises' FDI can significantly improve the firm's markups;enterprises' innovation plays an intermediary role in the transmission path of the two;enterprises' heterogeneity plays a role in the impact of foreign investment on the firm's markups;there is no significant difference in the effect of state-owned enterprises and private enterprises,while capital intensive enterprises are compared with labor-intensive enterprises.The promotion effect of enterprises' foreign investment on the firm's markups is more significant in labor-intensive industries.Therefore,this paper puts forward policy suggestions from policy support,R & D investment and enterprise structure upgrading.