Does technology-seeking OFDI improve the productivity of Chinese firms under the COVID-19 pandemic?

Zoey Wong, Afei Chen, Dan Peng and Qunxi Kong

Global Finance Journal, 2022, vol. 51, issue C

Abstract: This paper empirically investigates the impact of technology-seeking outward foreign direct investment (OFDI) on firms' productivity under the influence of negative external shocks, taking as a sample the investment data of Chinese firms before and during COVID-19. The results show that technology-seeking OFDI improves productivity, but not under negative external shocks. The dampening effect of such shocks is more significant when the host country is a developed country and in firms with multiple branches. Technology-seeking OFDI particularly improves the productivity of research and development and processing firms, and (among the productivity measures tested) most prominently affects total factor productivity.

Keywords: Technology-seeking OFDI; Productivity; COVID-19; External shock; Investment heterogeneity (search for similar items in EconPapers)
JEL-codes: F43 G10 G15 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:51:y:2022:i:c:s1044028321000739

DOI: 10.1016/j.gfj.2021.100675

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