Study On The Impact Of Domestic Consumption Scale On The Quality Of Export Products

Since 2020,the COVID-19 pandemic has swept the world,increasing uncertainties in the international situation,and the US continues to curb and suppress China’s high-tech industry.The domestic economy is facing new challenges.The comparative advantage based on factor costs is gradually disappearing,and structural adjustment and the transformation of growth drivers face new constraints.In this context,the CPC Central Committee has made a major decision to accelerate the construction of a new development pattern with the domestic cycle as the main body and the domestic and international double cycle mutually reinforcing.As the key to pull the domestic cycle,the increase of domestic consumption scale can open up the process of domestic production and circulation and help smooth the domestic cycle.As an inherent characteristic of export products,the quality of export products can make domestic export products occupy a higher overseas share in the overseas market where the export scale is limited,thus opening up the external circulation.Under the background of internal cycle driving external cycle development,whether the improvement of domestic consumption scale can promote the development of export product quality is a practical problem related to whether domestic demand can promote the high-quality development of external demand.This paper argues that there are three theoretical paths for domestic consumption scale to influence export product quality: industrial agglomeration,enterprise competition and scale itself.The increase of domestic consumption scale can promote industrial agglomeration,promote enterprise competition,and promote the improvement of productivity and innovation ability of enterprises in cooperation and competition,thus affecting the quality of export products.The increase of domestic consumption scale is often accompanied by the increase of residents’ consumption quality,and residents’ demand for high-quality products prompts enterprises to upgrade product quality.In addition,the national institutional environment has a moderating effect on the impact of domestic consumption scale on export product quality.The higher the level of institutional environment of a country,the stronger the promotion effect of domestic consumption scale on export product quality.Based on theoretical research,this paper conducted empirical analysis by using CEII-BACI,WITS and ICRG databases,and found that the improvement of domestic consumption scale had a positive impact on the quality of national export products,and this positive impact still held true in the sub-samples of developed and emerging countries.After adding the interaction terms of institutional environment and domestic consumption variables into the regression model,we find that institutional environment plays a moderating role in the influence of domestic consumption scale on export product quality.In addition,through the separation of institutional environment,we find that economic system and financial system play a more regulating role than political system.On the basis of theoretical and empirical analysis,this paper puts forward some policy suggestions.Under the current global market environment,it is more important to stimulate the domestic market consumption to improve the quality of China’s export products.Correct guidance should be given from two aspects of consumption volume and quality.At the same time,institutional environment should be committed to improving the business environment,strengthening the construction of financial markets.Through the above strategies to promote China’s economy with domestic demand to promote high-quality development pattern of external demand.