Technology seeking, R&D localization and comparative advantage: evidence from Chinese R&D-oriented OFDI

Feng Hu

Applied Economics Letters, 2023, vol. 30, issue 18, 2641-2646

Abstract: Using the logit model of discrete explained variable, this article explores the theoretical logic and underlying mechanism of Chinese outward foreign direct investment (OFDI) in developed countries. It finds that Chinese enterprises conduct R&D-oriented OFDI in countries with advanced technologies and rich R&D resources. These enterprises seek to learn applied rather than cutting edge technologies. Furthermore, Chinese R&D-oriented OFDI, which focuses on technology seeking and R&D localization, follows the principle of comparative advantage. The research provides new evidence for OFDI from China and a theoretical explanation of its underlying logic.

Date: 2023
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DOI: 10.1080/13504851.2022.2102568

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