Impact of the Business Environment on the High-Quality Development of International Trade Based on Data from 30 Provinces in China

Abstract

Superior growth in international trade is an important part of economic development. A good business environment is a necessary condition for economic development as well. This paper picks data from 2013 to 2021 and uses 30 Chinese provinces as research goals, excluding Tibet. Based on the new development concepts of innovation, coordination, green, openness, and sharing, this paper establishes the measurement system of international trade. The business environment is evaluated from four aspects: the public supply level, human resource level, market environment level, and government services level. The connection between the business atmosphere and the superior growth of international trade is empirically studied through the fixed effect model. The entropy weight method is used to assign weights to the indicators. The robust test of the regression model was carried out by the TOPSIS method. This paper also does the fractal regression and heterogeneity analysis. The research finds that: (1) Improving the business environment plays a big part in encouraging the high-quality development of international trade. However, the size of its impact varies from region to region and from level to level of economic development; (2) The business environment mainly affects international trade through human resources, market capability, and government services. The impact of public supply is significant but relatively weak; (3) The business environment has a gravely detrimental effect on the openness relative index of international trade, which includes the index of international commerce dependence. According to the research conclusion, three suggestions are put forward: improve the level of government affairs, pay attention to the introduction of talents, and optimize the market structure.