An Empirical Study On The Impact Of FDI On The Product Survival Of Enterprises

The duration of enterprise products can not only reflect the competitiveness of enterprises,but also reflect the accumulation of enterprise technology,and is also related to the sustainable development of enterprises and stable employment of employees,so the life of enterprise products is a very important indicator.However,due to the censoring bias problem of product lifetime,there are few studies in this area in the literature.In addition,China is implementing the dual-circulation strategy in an integrated manner and building a high-level open pattern.Based on these two considerations,this paper uses the data of Chinese industrial enterprises from 1998 to 2009,solves the estimation bias caused by data censoring through the inverse probability weighting method,identifies the impact of FDI scale on product survival,and elaborates its mechanism,so as to provide quantitative analysis for the use of foreign direct investment to enhance the product survival period of enterprises.we conclude that: firstly,the impact of FDI scale on the product survival time of enterprises shows an "inverted U-shaped" trend,and at the beginning,This also means that the simple pursuit of the expansion of foreign capital scale by enterprises can hardly effectively extend the life of products,enhance the market competitiveness of products,and further improve the efficiency of foreign capital utilization in order to achieve sustainable development of products in the market.Secondly,firm productivity and financing constraints are effective mechanisms for FDI to affect the duration of products,In the heterogeneity test part,after grouping the scale of enterprises,it is found that the mechanism role of financing constraints and enterprise productivity has also been confirmed,and the mechanism effect of financing constraints is the greatest for large enterprises,followed by medium-sized enterprises and small enterprises,in other words,with the continuous increase of enterprise scale,enterprises should pay more attention to indicators that affect the financing ability of enterprises,such as capital structure and capital flow,to avoid larger financing constraints and thus affect product operation.