Research On The Impact Of Foreign Capital Entry On The Quality Of Chinese Domestic Enterprises’ Export Products

Since the 21 st century,with the deepening of global trade,foreign investment has been playing an increasingly prominent role in the global economic system and has become the main driving force for the economic growth and trade development of various countries.With the promulgation of the Foreign Investment Law of the People’s Republic of China,the Opinions on Making Good Cross-Cycle Adjustment to Further Stabilize Foreign Trade,and the 14 th Five-Year Plan for the Development of Foreign Investment,China has further demonstrated its determination to build a new development pattern and adhere to high-quality development by utilizing foreign investment.At the same time,although the total export trade of domestic enterprises is on the rise,problems such as low product quality and lack of international competitiveness are becoming more and more obvious,which seriously affect the upgrading of China’s value chain division and trade competitiveness.Therefore,how to improve the quality of export products of Chinese domestic enterprises has become an important topic of academic discussion.The demonstration effect and industrial correlation effect of foreign capital entry can bring positive influence to domestic enterprises,but foreign capital entry will also crowd out the resources of domestic enterprises and form competition.What is the impact of foreign investment on the quality of domestic enterprises’ export products? Based on this,this paper discusses the effect of foreign investment on the export product quality upgrading of Chinese domestic enterprises,interprets the influence of foreign investment on the export product quality of Chinese domestic enterprises theoretically and empirically,and gives some reasonable policy suggestions.This paper firstly reviews relevant literature from the perspective of measurement and influencing factors of export product quality,spillover effect and influencing factors of foreign capital,and cross-research of the two.Based on the existing literature,this paper argues that foreign capital entry drives the technological innovation of domestic enterprises through demonstration effect,personnel flow effect,competition effect and industrial correlation effect,and then promotes the quality upgrade of export products,while technological distance can regulate the influence of foreign capital entry on the quality of domestic enterprises’ export products,and puts forward relevant research hypotheses.Secondly,in order to clarify the actual situation of foreign investment entry and export product quality of domestic enterprises,we measure the relevant indicators and analyze the quality of foreign investment entry and export product of domestic enterprises in the sample period.Thirdly,this paper uses matching data of Chinese industrial enterprises,Chinese customs and Chinese patents to carry out empirical test.The research shows that:(1)Foreign investment significantly improves the quality of domestic enterprises’ export products,and passes the robustness test;(2)In the heterogeneity test,foreign investment has a more significant promoting effect on the export quality of non-state-owned enterprises,processing trade enterprises and high-tech enterprises;(3)In the test of the influence mechanism,through the analysis of the intermediary effect,it is found that the entry of foreign capital further affects the quality of domestic enterprises’ export products through technological innovation;(4)A conditional process model is established to test the moderating effect and direction of technological distance in the intermediary process of technological innovation.It is found that technological distance positively moderates the promoting effect of foreign investment on the quality of domestic enterprises’ export products,and also positively moderates the latter half path in the intermediary process.Finally,according to the research conclusions,policy suggestions are put forward: actively guide foreign investment to enter and rationally guide foreign investment to invest;Encourage enterprise technological innovation,improve product quality;Improve the relevant legal system and create a favorable business environment;Improve regional foreign investment balance and strengthen regional coordinated development;Implement differentiated policies and optimize the industrial structure.