The Influence Of Host Country’s Institutional Environment On China’s Export Trade

In recent years,trade protectionism and regional economic integration are intertwined,which has had a complex impact on China’s export trade of mechanical and electrical products.On the one hand,some developed countries,led by the United States,pursue unilateralism and impose restrictions on China’s exports of mechanical and electrical products;on the other hand,the opening of China-EU express trains and the construction of the “Belt and Road” have created opportunities for the deepening of China-EU mechanical and electrical product trade cooperation.The EU has long been an important export market for China’s mechanical and electrical products.This is not only related to the EU’s developed economy and huge market,but also inseparable from the strong organizational synergy within the EU.However,the long-standing differences in the institutional environment and economy within the EU have caused tremendous differences in trade capacity between EU member states and China.This paper explores how the differences in EU member states’ institutional environment affect China’s exports of mechanical and electrical products under the layout of China’s reform and opening up in the new era.This thesis has important research significance for expanding China’s exports of mechanical and electrical products and promoting the stable development of China-EU economic and trade relations.From the perspective of the institutional environment differences among EU member states,this paper discusses the impact of the institutional environment on Chinese export of mechanical and electrical products.The second chapter summarizes and evaluates the relevant literature on China-EU economic and trade relations and institutional environment affecting exports;The third chapter analyzes the current situation of Chinese mechanical and electrical products exporting to the EU;The fourth chapter sorts out the theoretical mechanism that institutional environment affects exports;Then,the institutional environment evaluation system is used to analyze the institutional environment characteristics of EU member states.Finally,this paper conducts an empirical analysis of the trade-related data of China and the EU from 2005 to 2019 based on a fixed effect model.The innovations of this paper:(1)The research perspective is innovative.Under the background of the prominent contradiction of the institutional environment of EU member states,the research on the impact of the institutional environment on China’s export of mechanical and electrical products has practical reference significance combined with the actual situation;(2)The research method is improved.The principal component analysis method is used to construct the overall level of institutional environment indicators and the institutional environment indicators of various dimensions,and the influence of the correlation between explanatory variables on the empirical results is reduced;(3)The research conclusion is innovative.Relevant policy suggestions are put forward to consolidate and expand China-EU trade,improve the country-specific trade environment report,and improve the construction of the domestic institutional environment.The study found:(1)The improvement of the overall institutional environment of EU member states can promote the export of mechanical and electrical products in China;(2)The improvement of the political and economic institutional environment of EU member states can promote the export of mechanical and electrical products;(3)The effect of the legal system environment exists heterogeneity.When the legal system environment of EU member states is at a low level,the improvement of the legal system environment promotes the export of Chinese mechanical and electrical products.The opposite is true when the legal system environment of EU member states is at a high level.