Empirical Research Of Foreign Direct Investment Affect Export Quality Of China’s Mechanical And Electrical Products

"Quality development program(2011-2020)" clearly put forward to build "quality power",significantly improved the product quality,benefit significantly improved,by 2020.China’s current export scale ranks first in the world,but more and more countries implement trade protection to China,the fundamental reason is China gradually lose the dominant competition strategy of low price,so China export development must change from low wage competition to high quality competition.In this context,research of export product quality problems become necessary to enhance the quality of China’s export products,on the one hand,can solve the above problems,on the other hand,to promote the optimization of export structure and trade benefit.However,exports measuring export products’ quality and obtaining micro data are difficult,related research of China’s export product quality is less,so,this paper study China’s mechanical and electrical products export quality from the perspective of foreign direct investment.The Schott(2011)propose export quality index,which is a method of measuring the quality of exports products,but it is limit by the assumption quality of export products with time was linear trend,so using the function chain neural network is modified,in order to get more scientific and reasonable quality of export products.In the theoretical and empirical part,respectively,from the scale of foreign capital and the spillover effects to study the impact of foreign capital on the export quality of electromechanical products.The spillover effect is composed of demonstration effect,personnel flow effect and competition effect.In addition,selecting some other factors as auxiliary factors affecting the quality of export products,makes the research more comprehensive,such as industry factor density,R & D density and human capital.The empirical results show that: in the overall observation period,China’s mechanical and electrical products’ quaility is rising.The size of FDI has a significant effect on the export quality of China’s mechanical and electrical products.The overall spillover effect of FDI is negative in mechanical and electrical products,that is,the FDI spillover effect significantly hinders the improvement of the export quality of mechanical and electrical products.Moreover,the negative spillover effect of FDI is due to the negative effect of the demonstration effect,which is more than the positive effect of personnel flow effect and competition effect.Therefore,China should continue to carry out preferential policies to encourage and attract foreign direct investment.using foreign capital rationally and effectively,on the process of enhancing the spillover effects of FDI.In the case of the same other conditions,should differently treat different sources of foreigninvestment and capital intensive industries;encouraging original innovation,enhancing the competitiveness of enterprises.to promote the quality of Mechanical and electrical products.