Research On The Impact Of The Institutional Environment Of The Host Country On The Export Exit Of Chinese Enterprises

Since China’s accession to the WTO,Chinese enterprises have ushered in opportunities for exports.With the encouragement of national policies and the improvement of the strength of enterprises themselves,more and more Chinese enterprises have begun to go out to expand overseas markets.However,going to the international market is only the first step,the development status of enterprises after export,and how to survive in overseas markets have caused new concerns.As the exit of enterprises from the export market gradually emerged,relevant research began to explore the reasons.As an important characteristic of a country,the institutional environment affects every level of a country’s economic development and is also an important condition for enterprises to export which cannot be ignored.In this paper,Chinese industrial enterprises with export behavior from 2011 to2014 are selected as the research object,and the impact of the institutional environment of the host country on the export exit of enterprises is discussed from the aspects of the difference between the institutional environment of the host country and the home country(institutional distance)and the institutional environment of the host country(business environment).This paper draws the following main conclusions: firstly,the formal and informal institutional distance between the host country and the home country will increase the probability of enterprises exiting exports to the host country;secondly,by studying the relationship between the interaction between formal institutional distance and informal institutional distance and export exit,this paper finds that when the informal institutional distance is large,the positive effect of formal institutional distance on export exit will be weakened;lastly,the good business environment in the host country is conducive to reducing the risk of enterprise exit.