Why Financing Constraints Can Improve The Quality Of Export Products

With the rapid development of China’s foreign trade,the mismatch between the volume and quality of foreign exports has become increasingly obvious.The report of the 19 th National Congress clearly points out that China’s economy has shifted from a stage of rapid growth to a stage of high-quality development,and specifically at the level of micro enterprises,the gap between the quality of export products and global high-quality products must be further narrowed.In recent years,research on how to improve the quality of export products and the factors influencing them has gradually become one of the hot spots in the field of international trade.In particular,the mechanism of the impact of financing constraints on the quality of export products is still inconclusive.In the current Chinese financial market environment,the financing constraint can have a significant impact on the allocation of factors in the R&D innovation,production and operation,and export trade of enterprises.Therefore,it is of great theoretical and practical significance to explore the effect of the endogenous and exogenous financing constraints faced by Chinese enterprises on the quality of export products at the enterprise level.The paper focuses on the mechanism analysis,index measurement and empirical testing.At the theoretical mechanism level,this paper adds an entrepreneurial perspective to the traditional investor perspective,and examines the mechanism of improving the quality of export products through the path of entrepreneurial ability manifestation under the conditions of internal and external financing constraints.For the measurement of export product quality,this paper adopts an improved measure of demand information backpropagation method based on the balanced panel data formed by matching the China Customs Enterprise Database and the China Industrial Enterprise Database to obtain the standardised product quality indicators at the firm level.For entrepreneurial capability,this paper adopts total asset turnover and revenue growth rate as the measures of entrepreneurial operating capability and enterprise development capability,and the basic results are in line with expectations.In the empirical test,the paper tests whether the financing constraint can improve the quality of export products by setting up a benchmark model,and verifies whether the entrepreneurial capability mechanism set up in this paper is feasible by testing the mediating effect model.The results of the empirical tests support the theoretical hypothesis of this paper,that is,the increase of both internal and external financing constraints can improve the quality of export products,and the mechanism of entrepreneurial capability is in line with expectations.