Government Subsidies,political Connections And Competitiveness Of Automobile Manufacturing Enterprises

The economic effect of government subsidy is not only one of the core issues in the debate between industrial policy and competition policy,but also the key issue in the study of industrial economics.The exposure of the cheating scandal of new energy vehicles in 2016 has made the economic effect of government subsidies in the automobile industry the focus of relevant researches.This paper studies the influence of government subsidies on the competitiveness of automobile manufacturers from the perspective of political relevance.In the research process,based on the 21 domestic listed vehicle companies from 2011 to 2018 as the research samples,this paper constructed the competitiveness evaluation index system,calculated and described the competitiveness of enterprises by factor analysis.Then,the dynamic panel system GMM model is used to analyze the influence effect of government subsidy on enterprise competitiveness,the influence effect of political association on enterprise competitiveness,and the influence effect of government subsidy and political association on enterprise competitiveness.The empirical results show that government subsidies have a promoting effect on the competitiveness of automobile manufacturers.The more government subsidies an enterprise receives,the stronger its competitiveness.The higher the degree of political correlation,the lower the degree of corporate competitiveness.More importantly,political connection will inhibit the promotion effect of government subsidies on the competitiveness improvement of automobile manufacturers,that is,the government subsidies obtained through political connection will inhibit the competitiveness improvement of automobile manufacturers.Finally,through the comparison of the heterogeneity of enterprise ownership,the paper finds that the political connection of state-owned automobile manufacturing enterprises has a much greater inhibitory effect on the improvement of enterprise competitiveness than that of non-state-owned enterprises.The research conclusion is of practical significance to objectively and comprehensively understand the relationship between government subsidy,political association and enterprise competitiveness,and to adjust government subsidy policies with a definite target.