Firm Productivity and Outward Foreign Direct Investment: A Firm- Level Empirical Investigation of China

Wei Tian () and Miaojie Yu ()
Additional contact information
Wei Tian: Peking University
Miaojie Yu: Liaoning University

Chapter Chapter 2 in Outward Foreign Direct Investment of Chinese Enterprises, 2022, pp 13-40 from Springer

Abstract: Abstract With the implementation of China’s “going out” strategy, the country has seen a rapid increase in enterprises’ outward foreign direct investment (OFDI). Based on accurate measurement of the total factor productivity of “going out” enterprises, this chapter examines the relationship between firm productivity and OFDI using firm -level production and foreign direct investment data on manufacturing enterprises in Zhejiang province. After controlling the possible endogeneity in the regression analysis and other factors, the findings show that first, the higher is the productivity of the enterprise, the greater is the probability of foreign direct investment; second, the higher is the productivity of the enterprises, the greater is the amount of OFDI; and third, the income level of the destination country has no significant impact on the decision to invest or not. In addition, the capital intensity of the industry has no significant impact on the location of the enterprise. Therefore, the findings of this chapter provide micro -level empirical evidence for Chinese enterprises’ OFDI and, to some extent, make up for the research gap in this area.

Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:conchp:978-981-19-4719-3_2

Ordering information: This item can be ordered from
http://www.springer.com/9789811947193

DOI: 10.1007/978-981-19-4719-3_2

Access Statistics for this chapter

More chapters in Contributions to Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().