Contemporary Finance & Economics ›› 2020, Vol. 0 ›› Issue (11): 100-112.

• Industry & Trade • Previous Articles     Next Articles

FDI, Business Environment and Quality Upgrading of Export products

LIU Hong1, LIU Yu-wei1, CHEN Zi-wang2   

  1. 1. Capital University of Economics and Business, Beijing 100070;
    2. University of International Business and Economics, Beijing 100029, China
  • Received:2020-04-21 Revised:2020-09-05 Online:2020-11-15 Published:2020-12-10

Abstract: Improving export product quality is an important way to achieve high-quality development of trade. Based on the data of Chinese micro-enterprises from 2000 to 2013, this paper makes use of the fixed-effect model to investigate the impact of foreign direct investment (FDI) and business environment on the quality of enterprises' export products. The empirical results show that the business environment is an important factor for FDI to improve the export product quality. The better the business environment is, the better the effect of FDI on the export product quality will be. FDI in foreign invested enterprises has a more significant promotion effect on the export product quality than that in state-owned enterprises and private enterprises. FDI from Hong Kong, Macao and Taiwan and other regions all has an improving effect on the export product quality, but FDI from OECD countries has a more significant effect on the improvement of the quality. FDI in processing trade enterprises has a greater promotion impact on the export product quality than that in the enterprises engaging in general trade. The higher the enterprise productivity is, the more significant the promotion effect of FDI on the export product quality under the influence of business environment will be.

Key words: FDI, business environment, enterprise productivity, quality of export products

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