Outward foreign direct investment and green technology innovation: A company and host country perspective

Yanmin Shao, Junlong Li and Xueli Zhang

Technological Forecasting and Social Change, 2024, vol. 203, issue C

Abstract: This study explores the effect of outward foreign direct investment (OFDI) on green technology innovation (GTI) from a company and host country perspective based on the resource-based view and reverse spillover effect. Using the 2003–2019 listed Chinese A-share companies, this research provides micro-level evidence about the moderating effect of company and host country's factor on the relationship between OFDI on GTI. The company's environmental image, its investment breadth and the host country's environmental governance strengthened the relationship between OFDI and GTI, but the geographic distance to the host country weakened it. When engaging in OFDI, to enhance GTI and support the green transition, we recommend that companies develop a positive environmental image, increase their investment breadth and invest in a host country with strict environmental governance and geographical proximity. We have further found that OFDI promotes GTI by increasing overseas income and R&D investment. These findings provide new insights for governments in formulating incentive policies and for companies in choosing investment locations.

Keywords: OFDI; Green technology innovation; Environmental governance; Geographical distance (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0040162524001756
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:203:y:2024:i:c:s0040162524001756

DOI: 10.1016/j.techfore.2024.123379

Access Statistics for this article

Technological Forecasting and Social Change is currently edited by Fred Phillips

More articles in Technological Forecasting and Social Change from Elsevier
Bibliographic data for series maintained by Catherine Liu ().