How Does ESG Performance Enhance the Export Competitiveness of Chinese Manufacturing?

As global attention to sustainable development grows, the role of Environmental, Social, and Governance (ESG) practices is becoming increasingly prominent across various industries, particularly in export-oriented sectors. This paper examines the impact of ESG performance on the export competitiveness of Chinese manufacturing enterprises. By analyzing data from 9641 A-share listed manufacturing companies between 2011 and 2021, along with ESG ratings from the Huazheng database, this study investigates how ESG performance influences export competitiveness through financing constraints and risk-taking behavior. In the baseline regressions, ESG performance is positively associated with both the export sophistication index (ESI, coefficient = 0.0132, p < 0.05) and the log of export value (EXPORT, coefficient = 0.0241, p < 0.01). The findings show that superior ESG performance significantly enhances export competitiveness by reducing financing constraints and increasing risk tolerance. Further analysis reveals that the effect of ESG performance is stronger in regions with poorer business environments and among firms with lower institutional investor ownership. This study provides empirical evidence on how Chinese enterprises can enhance their international competitiveness through ESG practices, offering valuable insights for policymakers and business leaders seeking to integrate ESG and boost export competitiveness.