Outward foreign direct investment and green innovation in Chinese multinational companies

Xing Shi, Yujie Zeng, Yanrui Wu and Shuai Wang

International Business Review, 2023, vol. 32, issue 5

Abstract: This paper investigates the reverse green innovation spillovers of outward foreign direct investment (OFDI) in Chinese multinational companies and how environmental regulation stringency in host countries moderates the relationship between OFDI and green innovation. The empirical analysis is based on an integrated dataset of publicly listed firms from 2008 to 2018. The findings demonstrate a significantly positive relationship between OFDI and the green innovation performance of multinational companies. It is also shown that environmental regulation stringency in host countries positively moderates the relationship between OFDI and green innovation. Further analysis reveals the variation of the findings across multinational companies in host countries at different development stages, with different ownership and in industries with different pollution intensities. The observations in this paper imply that the institutional environment of investment destinations matters for reverse technology spillovers, particularly reverse green technology spillovers from OFDI.

Keywords: Outward foreign direct investment; Green innovation; Environmental regulation stringency; Chinese multinational companies (search for similar items in EconPapers)
JEL-codes: F21 O30 Q55 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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DOI: 10.1016/j.ibusrev.2023.102160

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