China’s outward foreign direct investment and exports diversification: an asymmetric analysis

Faheem Ur Rehman, Yibing Ding, Abul Ala Noman and Muhammad Asif Khan

Journal of Chinese Economic and Foreign Trade Studies, 2020, vol. 13, issue 2, 45-69

Abstract: Purpose - Over the past two decades, China’s outward foreign direct investment (OFDI) has risen remarkably. Whether such an increase affects the Chinese export diversification (ED) is a significant issue that has surprisingly remained unaddressed. This study aims to explain this issue that how OFDI plays a vital role in symmetric and asymmetric effects on its ED. Design/methodology/approach - The authors introduce a robust nonlinear autoregressive distributed lag (NARDL) model. Ironically, the purpose of this study is to analyze the symmetric and asymmetric effect of OFDI on ED. Findings - The authors propose that growing OFDI would be more advantageous to China, rather than the policies of contraction. Therefore, the study provides valuable policy insights to consider the long-run asymmetric momentum given to ED by China’s OFDI. Originality/value - The results of this study may seem to be an important newsletter for further policy discussion on how China can catch up on the benefits of ED through OFDI.

Keywords: China; OFDI; NARDL; Export diversification; E23; F14; F21; O10 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

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:eme:jcefts:jcefts-12-2019-0065

DOI: 10.1108/JCEFTS-12-2019-0065

Access Statistics for this article

Journal of Chinese Economic and Foreign Trade Studies is currently edited by Dr Yixiao Zhou

More articles in Journal of Chinese Economic and Foreign Trade Studies from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().