Trade Liberalization, Product Quality And Corporate Growth Rate

In the course of reform and opening up for nearly 40 years,China has played an important role in promoting international trade liberalization.The weighted average of China's import tariffs on goods has dropped from 32.18%in 1992 to 14.11%in 2001,Year tariff was only 3.93%.In recent years,China's widely promoted free trade zone strategy has also been seen as a new initiative to promote and promote the inherent logic of trade liberalization.Increasing degree of liberalization of trade means that international companies are increasingly positioned to find the cheapest cost and the best products and services on a global scale.The above process has a far-reaching and lasting impact on China's economy and business.In the increasingly liberal international market,domestic and foreign enterprises in the behavior and performance of the enterprise heterogeneity:high productivity companies than the lower productivity of enterprises larger,have a greater market share,more likely to become export Business,while low-productivity companies operate only in the country.Highly productive firms are more competitive and may give higher prices to homogeneous products and gain the dominance in the market;on the other hand,compared to their competitors,these companies with high productivity also have a cost advantage,Addition rate is higher,so these companies have a higher rate of addition.Therefore,in this context,it is necessary to combine the trade liberalization and product quality to jointly explore the further study of the firm's rate of addition.For these issues to explore and research,first of all to increase social welfare,and secondly for the formulation of government policy to provide a policy basis,and finally can help enterprises to improve their competitive strength.This paper also contributes to the study of literature on free trade in recent years.Although these studies focus on the increase in the efficiency of production in trade,we have studied another potential mechanism-the change in the distribution of firm additions-the results show that,based on the "competitive effect" and "learning effect”:first,trade freedom To promote enterprises to innovate and learn the effect of enterprises to increase investment in R&D and technological innovation,improve production and upgrading of equipment,improve product quality,improve output efficiency and technical level,thereby reducing the marginal cost,business rate will be greatly increased Second,because the trade liberalization to reduce the various trade barriers,so that greatly reduce the cost of trade,business production costs will be reduced,the enterprise will automatically increase the rate of increase.Third,but the intensification of market competition will make enterprises cut prices between each other to compete for the market,so that the company will increase the rate of addition.According to the results of theoretical analysis and empirical analysis,this paper argues that the government should promote reform and opening up,promote trade liberalization,break regional barriers,reduce the cost of enterprise sales,use the power of the market to promote enterprise transformation and upgrading,improve product quality and promote market development.