The Impact Of Institutional Quality On The Quality Of Enterprises’ Exported Products

Recently,the world is experiencing the biggest change ever seen in a century,combined with the impact of the epidemic,China’s economy has suffered serious challenges.At the same time,the 14 th Five-Year Plan period has started a new journey of socialist modernization,and China is in an important strategic opportunity period.China can only promote high-quality economic development by further deepening internal reforms and expanding a high level of external opening.The improvement of institutional quality is an important part of China’s internal reform and an intrinsic motivation to promote high-quality trade development.Therefore,this paper uses the database of industrial enterprises from 2004-2013 to study the impact of China’s regional institutional quality on the quality of enterprises’ export products from two dimensions: formal and informal institutions.Translated with www.Deep L.com/Translator(free version)First,this paper summarizes and organizes the literature from two directions: related research on the quality of export products and related research on institution quality.On this basis,it is stated that the quality of the institution will affect the improvement of the quality of export products through three ways: human capital effect,resource allocation effect and innovation incentive effect.Second,match the data of Chinese industrial enterprises and customs import and export data from 2004 to 2013,use the KSW method to measure the quality of export products,and analyze the status quo of the quality of export products at different levels and the level of formal and informal institutions in various regions.Finally,use high-dimensional fixed effects,marginal analysis,2SLS and other methods to conduct empirical analysis on the impact of institutional quality on the quality of export products,and conduct heterogeneous analysis from the perspectives of the nature of the enterprise,trade mode,region,and industry contract dependence.At the same time check the impact mechanism.The research results show that: First,the formal and informal institution in each region have a positive impact on the quality of export products,but the formal institution has a stronger impact and has passed the endogenous and robustness tests.Second,there is an alternative relationship between the formal institution and the informal institution.With the improvement of the formal institution,the marginal effect of the informal institution on the quality of export products gradually decreases.Third,the improvement of the quality of the formal institution will promote the upgrading of the quality of export products through the effect of human capital,the effect of enterprise resource allocation,and the effect of innovation incentives,but for the informal institution,it is mainly through the effect of enterprise resource allocation.Fourth,informal institutions in various provinces is more beneficial to domestic enterprises,but formal institutions is more beneficial to foreign companies;the informal institution don’t have obvious impact on different regions’ product quality.but the higher the formal institution,the stronger the promotion of the quality upgrade in the eastern region.There is no obvious difference in the informal institution between general trade and other types;the more perfect the regional institution,the more beneficial the export quality improvement of industries with high contract density.Based on the findings of this study,this paper puts forward relevant suggestions from three perspectives: formal institution,informal institution and export upgrading.First,for the provinces and cities within the business environment should be optimized,inter-provincial cooperation should be strengthened,and regional barriers should be reduced.Secondly,regions where the formal institution is not yet perfect can play a positive role by building informal institutions and advocating values such as honesty,fraternity and mutual assistance,so that informal institutions can play a positive role instead of formal institution.Finally,regions should develop diversified products to form a differentiated competitive pattern,while uniting enterprises in the industry,creating alliances,formulating rules of the trade,and enhancing negotiation power,while strengthening the sense of innovation and brand awareness.