 Can the agglomeration of producer services boost China’s ‘going out’?Senhua Huang and Feng Han Applied Economics, 2023, vol. 55, issue 23, 2709-2724 Abstract: As China has been encouraging enterprises to ‘go global’ and actively promoting the optimization of industrial structure, it is important to discuss the impact of its outward foreign direct investment (OFDI) considering producer service industry agglomeration. For analysing the mechanism by which the agglomeration of producer services affects China’s OFDI, this study uses inter-provincial panel data from 2004 to 2019 and a spatial Durbin model to empirically test the impact of producer service agglomeration on OFDI. We show that the agglomeration of producer services significantly promotes OFDI in a particular region through economies of scale and enterprise productivity improvement. And it also significantly promotes OFDI in its neighbouring regions. The effect of producer service agglomeration on OFDI shows regional heterogeneity. Namely, the agglomeration of producer services in the eastern region promotes the OFDI in this region and it has not had a significant impact on the OFDI in neighbouring regions. Further, the agglomeration of producer services in the central and western regions does not have a significant effect on their OFDI and that of neighbouring regions. Date: 2023 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:applec:v:55:y:2023:i:23:p:2709-2724 Ordering information: This journal article can be ordered from DOI: 10.1080/00036846.2023.2187036 Access Statistics for this article Applied Economics is currently edited by Anita Phillips More articles in Applied Economics from Taylor & Francis Journals |
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