| Opening-up is a basic state policy that China has always adhered to,and it has made outstanding contributions to China’s economic growth over the past four decades.Attracting and utilizing foreign capital is one of the main ways for China to actively deepen its opening to the world.With the continuous opening-up of China’s capital market,foreign equity participation in listed companies has increasingly become an important way for China to utilize foreign capital.Since the 18th CPC National Congress,China’s economic development has entered a new stage,transforming from the simple pursuit of high-speed economic growth to the pursuit of high-quality development.The new historical stage also puts forward new requirements for China to attract and utilize foreign investment.Enterprises are the micro-subject of undertaking foreign investment,and also the micro-foundation of achieving high-quality economic development.Therefore,it is of great practical significance to clarify the relationship between foreign equity participation and total factor productivity of enterprises for China to further open its capital market to the world in the future,utilize foreign capital to help China’s economic transformation and upgrading,and improve the quality and efficiency.This paper takes the panel data of China’s A-share listed companies from 2010 to 2021 as the research object,and uses the fixed-effect model to explore the impact of foreign equity participation on total factor productivity of enterprises.At the same time,heterogeneity analysis,robustness and endogeneity test were conducted on the basis of baseline regression,and the internal mechanism and transmission mechanism were verified by using the mediation effect model.The empirical results show that foreign equity participation can promote the improvement of total factor productivity of enterprises,and the higher the proportion of foreign equity ownership,the more significant the improvement of total factor productivity of enterprises.However,this enhancement effect is heterogeneous in terms of foreign ownership time,the duration of foreign equity ownership,factor intensity,ownership and regional distribution.Specifically,compared with enterprises with short shareholding duration,labor-intensive enterprises,state-owned enterprises and enterprises in central and western regions,foreign equity participation has a more significant effect on the improvement of total factor productivity of capital-intensive and technology-intensive enterprises,non-state-owned enterprises and enterprises in eastern regions.In addition,in terms of its mechanism of action,financing constraints and R&D input play a partial intermediary role between foreign equity participation and total factor productivity of enterprises,that is,foreign equity participation effectively promotes the improvement of total factor productivity of enterprises by alleviating financing constraints and increasing R&D input of enterprises.This paper focuses on the impact of foreign participation on the total factor productivity of enterprises and enriches our study on the use of foreign investment at the micro level.The results show that our country should unswervingly deepen the level of opening up to the outside world and accelerate the attraction and utilization of high level foreign investment.We will implement a negative list system and reduce restrictions on foreign investment.Encourage foreign shareholders to make strategic investments and extend the duration of foreign ownership;We will give full play to the government’s publicity role and actively guide high-level foreign investment to the central and western regions and labor-intensive enterprises.Foster a favorable business environment.It has important practical significance for our country to change the pattern of economic development and achieve high-quality economic development. |
