How does outward foreign direct investment influence manufacturing industry sustainable growth in China?

Rui Xue (), Jiaqi Zhang, Huizheng Liu, Keyu Li and Claude Baron ()
Additional contact information
Rui Xue: Beijing University of Technology
Jiaqi Zhang: Beijing University of Technology
Huizheng Liu: Beijing University of Technology
Keyu Li: Beijing University of Technology
Claude Baron: LAAS-ISI - Équipe Ingénierie Système et Intégration - LAAS - Laboratoire d'analyse et d'architecture des systèmes - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INSA Toulouse - Institut National des Sciences Appliquées - Toulouse - INSA - Institut National des Sciences Appliquées - UT - Université de Toulouse - UT2J - Université Toulouse - Jean Jaurès - UT - Université de Toulouse - UT3 - Université Toulouse III - Paul Sabatier - UT - Université de Toulouse - CNRS - Centre National de la Recherche Scientifique - Toulouse INP - Institut National Polytechnique (Toulouse) - UT - Université de Toulouse

Post-Print from HAL

Abstract: With the economic development of various countries entering a new stage, sustainable development has become a focus of development transformation. It is well known that outward foreign direct investment (OFDI) drives the development of the manufacturing industry. However, the OFDI's influence mechanism on the sustainable development of the manufacturing industry still needs to be clarified, and its specific action path requires further exploration. This study thus constructs a performance evaluation indicator system for the manufacturing industry from sustainable perspective. Based on interprovincial panel data of China's 30 provinces from 2008 to 2017, the entropy method is used to measure and analyse the sustainable development level of the manufacturing industry in each province. Second, the influence of OFDI on the sustainable development level of manufacturing industry is verified using a fixed effects model. Finally, through the establishment of the mediation effect and threshold effect models, we conduct in-depth research on its specific mechanism, testing the mediation effect of technological progress and threshold effect of openness. The results reveal that government departments can enhance the sustainable development of manufacturing industry by promoting technological progress through OFDI. Improving the degree of openness can also promote sustainable development in the manufacturing industry.

Keywords: Sustainable development; manufacturing industry; OFDI; mediating effect; threshold effect (search for similar items in EconPapers)
Date: 2023-04
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in Applied Economics, 2023, 56 (23), pp.2752-2768. ⟨10.1080/00036846.2023.2200233⟩

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:hal:journl:hal-04259490

DOI: 10.1080/00036846.2023.2200233

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().