Research On The Transition From Export Frade To The Foreign Investment Of Private Enterprises In Zhejiang

With the rapid development of economic globalization, China’s private enterprises explore the international market in a more diversified way. As a typical representative, private enterprises of Zhejiang province gradually change the traditional way to enter the international market from export trade to foreign investment, which has become an important issue in the development of private enterprises of Zhejiang province and China. So what kind of private enterprises can choose the way of foreign investment? What kind of private enterprises can choose the way of export? What kind of inner link between exports and foreign investment? These are the focal point of this paper.In this paper, we make the new trade theory as our new perspective to upgrade the status quo to the level of theory. We select76listed private enterprises in Zhejiang province as the study sample to do the empirical analysis. Firstly, we use the Malmquist index method to estimate the overall productivity of Zhejiang private enterprises, from which we find private enterprise’s productivity of Zhejiang province is in a state of negative growth. Secondly, we divide the private enterprises of Zhejiang province into two categories and calculate the approximate total factor productivity of these two categories of enterprises by Solow residual method. The result shows that the foreign investment enterprise’s productivity is higher than the export enterprise’s productivity, which shows that the productivity heterogeneity plays an important role in the choice of export and foreign investment. We also find foreign investment enterprises concentrated in the labor intensive and capital intensive industry.Moreover, we explore the effect of productivity on foreign investment target selection between N-OFDI and F-OFDI enterprises.On the basis of empirical research, we select the Geely Group and the Wanxiang Group as typical cases to make further discuss. Finally, we make a summary of this paper and put forward some relevant policy suggestions.