The Impact Of Import Competition On Domestic Value Added Of Chinese Enterprises

In the decades of continuous development of global value chains,China has actively participated in the international division of labor and cooperation with an open and inclusive attitude,and import and export trade has been greatly developed.While my country’s total export volume is growing rapidly,the development of export quality cannot be ignored.In view of this,this article uses the domestic value-added rate(DVAR)of the company’s exports to measure the profitability of export companies in international trade.At the same time,it should be noted that under the global value chain trade model,the export trade gains of a company are closely related to the company’s import.In recent years,China is gradually advancing the transition from export-oriented to import-oriented trade structure,and the import competition faced by domestic export companies has gradually emerged.In this context,it is of great practical significance to analyze the impact of import competition on the export DVAR of enterprises.Most of the existing studies are from the perspective of the domestic economic environment to study the influencing factors of export DVAR.At present,there are relatively few documents on import competition and enterprise export DVAR.How to systematically examine the impact of import competition on the domestic value-added rate of China’s exports needs Further research and supplement.Through combing the literature on import competition and export domestic value-added rate,this article attempts to clarify the theoretical mechanism of import competition on the domestic value-added rate of exports.Specifically,the total factor productivity(TFP)of a company is the effect of import competition on the domestic value-added of a company’s exports.Important channel of value.Therefore,this article proposes the following two hypotheses: import competition has a negative impact on the export domestic value-added rate of Chinese enterprises;total factor productivity is an intermediary variable of import competition affecting the export domestic value-added rate of enterprises.Based on the integration of the Chinese industrial enterprise database and the customs trade database,this paper systematically studies the impact of import competition on the DVAR of Chinese enterprises.This paper uses the TOBIT method to estimate and selects import penetration rate as the proxy variable of import competition to regress the export DVAR of enterprises.The coefficient of import penetration rate is significantly negative,which verifies the hypothesis 1 of this article,that is,import competition affects the export DVAR of enterprises.There are negative effects.Following this article,a series of robustness tests were performed,and the consistency of the estimated coefficient of import competition was verified through sample selection bias test,data interception test,and recalculation of DVAR.This paper uses the two-stage least squares method(2SLS)to solve the possible endogenous problems between import competition and enterprise export DVAR,and the regression results are still robust.This article further examines whether the impact of import competition on the export DVAR of enterprises is different among heterogeneous enterprises,and finds that: from the perspective of enterprise ownership,import competition has the strongest inhibitory effect on DVAR of foreign-funded enterprises,followed by state-owned enterprises and private enterprises.DVAR has the weakest inhibitory effect;from the perspective of corporate trade methods,import competition has the strongest inhibitory effect on mixed trading companies,followed by processing trade companies,and has the weakest inhibitory effect on general trading companies.From a regional perspective,import competition has the strongest inhibitory effect on the DVAR of enterprises in the eastern region,followed by enterprises in the central region,and the weakest inhibitory effect on the DVAR of enterprises in the western region.From an industry perspective,import competition has the strongest inhibitory effect on the export DVAR of technology-intensive industries,followed by capital-intensive industries,and the weakest inhibitory effect on labor-intensive industries.Finally,this paper verifies the mediating effect of total factor productivity,and the results show that import competition hinders the increase in the domestic value-added rate of exports by reducing the total factor productivity of enterprises,which verifies the second hypothesis of this article.Finally,this article puts forward the following policy recommendations for increasing enterprise DVAR and achieving a high level of openness: On the one hand,the government should grasp the impact of import competition on the development of the industry,and further improve the supporting measures of import policies;for industries that are vulnerable to import competition,implement Differentiated tariff policy,set up a buffer space for import competition,improve the pertinence and effectiveness of the policy,and prevent the impact caused by large-scale import competition.On the other hand,enterprises should actively carry out production transformation,increase the complexity of their production technology,improve their own production specialization capabilities,promote the reform and upgrade of production technology,continuously promote the improvement of enterprise production efficiency,and finally increase the enterprise’s ability to face import competition ability.