Abstract Based on incomplete contract theory, this paper analyzes the internal mechanism among contract environment, FDI and quality of export products, and uses the matching data from HS6 code product level data of UN comtrade Database, the World Bank Global Governance Index and Business Environment Database during 2000-2018 to conduct an empirical test. There are the following results. Interaction between contract environment and foreign direct investment can significantly improve the quality of export products, and a good contract environment can positively regulate the relationship between foreign direct investment and export product quality. Heterogeneity test shows that interaction between contractual environment and FDI plays a more significant role in improving the quality of export products in countries with high levels of economic development and industries with high technical complexity. The mechanism test finds that the improvement of the contract environment can realize effective utilization of foreign capital and promote the quality of export products by relieving financing constraints, optimizing factor structure and increasing scientific research and innovation.
2021, Vol. 38 
