Can International Students in China Affect Chinese OFDI—Empirical Analysis Based on Provincial Panel Data

Shaoming Chen, Yuheng Lin, Xinyi Zhu and Ahsan Akbar
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Shaoming Chen: International Business School, Guangzhou College of South China University of Technology, Guangzhou 510080, China
Yuheng Lin: International Business School, Guangzhou College of South China University of Technology, Guangzhou 510080, China
Xinyi Zhu: International Business School, Guangzhou College of South China University of Technology, Guangzhou 510080, China
Ahsan Akbar: International Business School, Guangzhou College of South China University of Technology, Guangzhou 510080, China

Economies, 2019, vol. 7, issue 3, 1-16

Abstract: The present study employs panel data of 29 provinces and municipalities in mainland China from 2003 to 2016 to empirically investigate the influence of international students on China’s outward FDI. The results show that international students in China can significantly promote outward FDI in various Chinese provinces. Moreover, we observe a substitution effect with export scale and wage level, that is, attracting international students can offset the negative impact of insufficient export scale and low wages on regional OFDI (outward foreign direct investment). From a regional perspective, the growth in international students’ inflows in China has a significant positive impact on OFDI of provinces along “the 21st Century Maritime Silk Road”, but has no significant impact on the provinces along “the Silk Road Economic Belt”. The above conclusions not only elaborate the regional distribution mechanism of OFDI in China, but also provide a reference for each province to formulate more favorable policies to attract foreign talent to effectively implement the strategy of “going global”.

Keywords: international students in China; outward FDI; export scale; wage level; “The Belt and Road” (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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