Study On The Impact Of Trade Frictions On The Domestic Value Added Rate Of Enterprises’ Exports

China’s economy has maintained rapid growth since the reform and opening up.From the demand side,China’s economic growth is mainly driven by consumption,investment and exports.After joining the World Trade Organization,trade with countries around the world has become increasingly frequent,and the scale of foreign trade has continually risen.However,the forces of global trade protectionism have gradually risen in recent years.The United States has continuously imposed tariffs on Chinese manufacturing products.International trade frictions often occur,which have many adverse effects on the development of China’s manufacturing foreign trade.Relying on the advantages of a huge market and low cost,the manufacturing industry quickly integrated into the global value chain division of labor with processing trade as a breakthrough.The growth of manufacturing exports was in trouble due to the slowdown in global economic growth and the rising cost of domestic production factors.Low-end and low-value value-added problems have gradually become prominent.Therefore,trade friction and export domestic valueadded rate will help to understand and deal with trade friction more deeply.Increasing the export domestic value-added rate will help improve the status of enterprises in the global value chain.First,this article systematically sorts out the related literature on trade friction,the theory of enterprise heterogeneity trade and the export domestic value added rate,and constructs a theoretical model of the impact of trade friction on the domestic value-added rate of export.Then,this article adopts the micro-accounting method to match the Chinese industrial enterprise database and the customs database to obtain the measurement results of the value added rate of the company’s exports.Furthermore,this article uses the antidumping data in the World Bank’s Temporary Trade Barriers database as a proxy variable which can measure trade friction to test the impact of trade friction on the company’s domestic exports,and adopts the effect of value-added rate,the adjustment effect model to test the mechanism of the impact of trade friction on the domestic value-added rate of enterprise exports.Finally,based on the research conclusions,policy implications are put forward.Through theoretical and empirical research,the following main conclusions are as follows:First,use data on the frequency of anti-dumping investigations against enterprises as a proxy variable to measure the frequency of trade frictions,and match data from the Chinese industrial enterprise database,customs database,and World Bank Temporary Trade Barriers database to test the impact of trade friction frequency on the domestic value-added rate of enterprises’ exports.Results show that the domestic value-added rate of exports will be significantly reduced when the frequency of trade friction increases,that is,the frequency of trade friction has a significant inhibitory effect on the domestic value-added rate of exports.Second,use the data on the duration of anti-dumping investigations against enterprises as a proxy variable to measure the duration of trade frictions to test the effect of the duration of trade frictions on the domestic value-added rate of exports.Results show that the export domestic value added rate of the company will be significantly reduced when the duration of the trade friction increases,that is,the duration of the trade friction has a significant inhibitory effect on the export domestic value added rate.Third,use the data on the frequency of anti-dumping investigations by enterprises as a proxy variable to measure the frequency of trade frictions and construct the moderating effect model to test the impact mechanism of the duration of trade frictions on the export domestic value added rate of Chinese manufacturing enterprises.Increases in corporate cost plus and corporate productivity,corporate exit will weaken the inhibitory effect of corporate export value-added rates during the duration of trade friction.Fourth,use the data on the duration of anti-dumping investigations against enterprises as a proxy variable to measure the duration of trade frictions,and construct the moderating effect model to test the mechanism of the impact of the duration of trade frictions on the domestic value-added rate of exports of Chinese manufacturing companies.The quality of corporate exports,the increase in enterprise productivity and enterprise exit will weaken the inhibitory effect of the export value added rate of enterprises during the duration of trade friction.Fifth,in terms of the frequency of trade frictions.In heterogeneity of the factor intensity of enterprises perspective,the domestic exports of capital-intensive and labor-intensive enterprises increase when the frequency of trade frictions increases.The value rate will be significantly reduced,but labor-intensive enterprises are more affected by the frequency of trade frictions.In heterogeneity of enterprise ownership perspective,the frequency of trade friction has no significant effect on the export domestic value added rate of state-owned enterprises and collective enterprises,while wholly foreign-owned enterprises,Sino-foreign joint ventures and private enterprises have a significant inhibitory effect.In heterogeneity of the technological level of the industry perspective,the frequency of trade friction has no significant effect on the export domestic value-added rate of high-end industry enterprises,and has a significant restraint on low-end industry enterprises,mid-to-low-end industry enterprises and mid-to-high-end industry enterprises effect.In heterogeneity of corporate trade patterns perspective,the frequency of trade friction has no significant effect on the export domestic value-added rate of general trading companies,but has there is a significant inhibitory effect on processing trade and mixed trade companies.In heterogeneity of the regions where companies belong perspective,the frequency of trade friction has no significant effect on the export domestic value-added rate of enterprises in the western region,but there is a significant inhibitory effect on the enterprises in the eastern and central regions.Sixth,in terms of the duration of trade friction.In heterogeneity of the factor intensity of enterprises perspective,labor and capital-intensive enterprises,enterprises are affected by the increase in the duration of trade frictions.The increase in the domestic value-added rate has a certain restraining effect,but the restraining effect of capital-intensive enterprises is relatively greater.In heterogeneity of enterprise ownership perspective,the duration of trade friction has a significant inhibitory effect on the export domestic value-added rate of foreignowned enterprises,Sino-foreign joint ventures and private enterprises have little effect on state-owned enterprises and collective enterprises.In heterogeneity of enterprise technology level perspective,the duration of trade friction has a significant inhibitory effect on the export domestic value added rate of low-end and high-end industry enterprises,and has there is no effect on low-end and high-end industry enterprises.Significantly.In heterogeneity of corporate trade methods perspective,the duration of trade friction has a significant inhibitory effect on the domestic value-added rate of exports of general trading companies and processing trade companies,while the effect on mixed trading companies is not significant.In heterogeneity of the eastern central and western regions of enterprises perspective,the duration of trade friction has a significant inhibitory effect on the export domestic valueadded rate of enterprises in the eastern and western regions,while the impact on enterprises in the central region is not significant.Based on the theory of heterogeneous trade,this article studies the impact of trade friction on the domestic value added rate of Chinese manufacturing enterprises’ exports,combs its micro-features and theoretical mechanisms.The three main contributions are as follows:(1)Based on existing theories,build trade friction on enterprise exports and the theoretical model of the impact of the domestic value-added rate.(2)This article provides a new perspective for understanding the domestic value-added rate of exports.Previous papers focus more on the impact of global value chains on Sino-US trade frictions,while few literatures on value-added trade from the perspective of trade frictions focus on macro-level research and lack a certain micro-theoretical basis.This article attempts to fill in these vacancies.(3)Clarify the micro-theoretical mechanism of the impact of trade frictions on the domestic value-added rate of exports.In the empirical analysis of trade frictions on the domestic value-added rate of exports,some methodological innovations have also been made,and adjustments effect model has been constructed based on the empirical model.To explore the way of the influence of trade friction on the domestic value-added rate of export of enterprises.The conclusions of this article have the following policy implications:(1)Adjusting the trade structure to deal with the restraining effect of trade frictions should increase the proportion of capital and technology-intensive industries in foreign trade exports,develop high-quality,high-tech,and high-value-added products Trade,taking advantage of the opportunities brought by financial development,and promote technological innovation and product upgrading of enterprises through the introduction of technology and joint production.(2)To promote high-quality development of enterprises to withstand the impact of trade frictions,R&D investment should be increased,innovative mechanisms should be built,high-end talents should be actively introduced,development methods should be changed,and traditional industries should be encouraged to develop high-quality products to promote quality upgrades.(3)Attach importance to the development of foreign trade in the central and western regions to alleviate the impact of trade frictions,promote the upgrading of processing trade from the low-end of assembly processing to the mid-to-high end of R&D,design,and core device manufacturing,and logistics.