The Impact of Relaxing Foreign Equity Ratio Restriction on R&D of New Energy Automotive Industry—Empirical Analysis Based on Micro Enterprise Data

Abstract

AbstractThe development of new energy automobile industry is very important for China to move from a big automobile country to a powerful automobile country, and it is a major strategic measure to cope with climate change, promote green development, and achieve carbon neutrality. This paper uses the panel data of the new energy vehicle industry from 2016 to 2019 to study the impact of the opening of foreign equity restrictions on the R&D and innovation of China’s new energy vehicle industry. The results show that whether measured from the perspective of R&D input or R&D output, the foreign equity ratio opening policy has a significant promoting effect on the innovation of the domestic new energy vehicle industry. The data were divided into two groups according to whether they were new energy vehicle enterprises or not. The results showed that the policy of opening foreign equity ratio significantly promoted the R&D innovation of non-vehicle enterprises. For the vehicle enterprises, the policy will have a negative impact on the enterprises in the short term and hinder their R&D innovation.KeywordsRelaxing foreign equity ratio restrictionNew energy vehicleR&DPanel regressionGreen development