Impact of China’s Outward Foreign Direct Investment on Enterprise Performance

The present study seeks to address two fundamental questions.(1)Does outward foreign direct investment(OFDI)enhance enterprise performance ultimately?(2)How does this effect come about?A new dataset from the years 2011 to 2016 based on the micro-data of 88 Chinese multinational-listed enterprises was used to test research hypotheses with the mediating effect modeling approach.The study results reveal that:(1)the investment intensity has a positive influence,while investment span has a negative influence on enterprise performance;(2)the enhanced innovation capability can considerably increase the enterprise performance,while investment intensity and span both hinder the upgrading of innovation capability;and(3)the innovation capability of an enterprise plays a partial intermediary role among investment span and enterprise performance.However,there is no mediating effect between investment intensity,innovation ability,and enterprise performance.

Impact of China’s outward foreign direct investment on environmental pollution in the home country

In the context of economic globalization and increasingly tight resource and environmental constraints,the environmental effect of open economy has been highly concerned by the academic community.With the implementation of the“Going Global”campaign and the“Belt and Road Initiative”,China’s OFDI has been expanding.What is the impact of the rapid growth of OFDI on the home environment?How can China improve the quality and level of OFDI in order to promote domestic green development under the dual context of constructing a new dual circulation development pattern and advocating green development?These questions deserve further discussion.Most of the existing literature focuses on the empirical interpretation of OFDI’s home country environmental effect by using linear models,while few involve nonlinear models.The literature on the important role of financial development in home country and the threshold effect of OFDI on home country environment is even less common.In view of this,based on the mechanism of argumentation and propositional inference,this paper calculated the environmental pollution index of 30 provinces in China from 2003 to 2017 by using China’s provincial panel data of these years and selecting industrial waste water,industrial waste gas,industrial SO_(2),and industrial soot emissions and industrial solid waste production amount index.Then,this paper empirically studied China's OFDI home environment of financial development threshold effect by constructing financial development as the threshold variables panel threshold model.The results showed that:①China’s OFDI had a significant impact on the environment of the home country,based on the level of financial development of the home country.When China’s financial development level was lower than the first threshold value,China’s OFDI had a significant restraining effect on environmental pollution in the home country.When China’s financial development level crossed the first threshold value but did not exceed the second threshold value,China’s OFDI significantly enhanced its inhibiting effect on environmental pollution in its home country.When China’s financial development level was higher than the second threshold value,the inhibiting effect of China’s OFDI on environmental pollution in the home country was further enhanced.②In the sample period,the financial development level of most provinces in China was not high.Only a few provinces with high financial development level had a strong inhibiting effect on environmental pollution in their home country,and the provinces with a high degree of coupling and coordination between OFDI and financial development tended to have a low level of environmental pollution.Accordingly,this paper proposes to optimize the financial service environment of OFDI,improve the green technology content of OFDI,and strengthen the original innovation and re-innovation ability of green technology.

Environmental regulation,hidden economy,and China's outward foreign direct investment

The need to balance economic growth and its environmental impact continues to be a serious issue in China.As environmental regulation in China increases in importance,it is critical to understand how it impacts economic growth drivers such as outward foreign direct investment(OFDI)to formulate effective policies.One consideration should be the hidden economy,which can weaken the effects of environmental regulation on OFDI.This study investigates the scale of the hidden economy in 30 provinces and province-level municipalities in China in the period 2004 to 2015.The study uses the multiple indicators and multiple causes(MIMIC)model and the systematic generalized method of moments(GMM)test to analyze the impact of environmental regulation and the hidden economy on China's OFDI.The results show that stronger environmental regulation promotes OFDI.However,the hidden economy inhibits China's OFDI,as the positive effects of environmental regulation that drive OFDI are distorted.From a regional perspective,stronger environmental regulation promotes OFDI as well,while the hidden economy inhibits it.The interaction between environmental regulation and the hidden economy also inhibits it significantly.

New-Wave Emerging Multinational Companies： The Determinants of Their Outward Foreign Direct Investment

Focusing on the fast growth of BRICS＇ outward foreign direct investment （OFDI） and multinational companies during the crisis has left unheeded that some other emerging economies also grow much faster than average in the global economy and has become significant and fast-growing direct investors abroad. A sample of such （thirteen） new-wave emerging countries （NWECs） is gathered on the criterion of being ranked among the most significant foreign direct investors in the global economy. The literature review exhibits only very few articles existing on such a topic so far. Descriptive statistics enable tracing OFDI by NWECs-based multinational companies back to the 1970s, checking its geographical orientation and industrial structure, and assessing the relative importance of cross-border mergers and acquisitions. Econometric estimation exhibits that direct investment moving off the NWECs is explained by so-called push factors such as the home country＇s GDP, GDP per capita, GDP rate of growth, the share of high-technology exported products in overall export, the number of technological patents registered, and how much inward foreign direct investment discussed in the light of Dunning＇s investment development hypothesis. stock has previously been hosted. These results are path model and Matthews＇ linkage-leverage learning

China’s Outward Foreign Direct Investment and Economic Growth in Developing Countries

The implementation of China’s open development strategy has unveiled a wave of outward foreign direct investment(OFDI)by Chinese companies,with global implications.Based on panel data from 146 developing countries from 2003 to 2017,we investigate the growth effects of China’s OFDI.We find that China’s OFDI has promoted significant economic growth in developing countries.Not only could China’s OFDI increase GDP per capita of a country in a short time but raise the country’s long-run equilibrium value as well.In addition,the growth effects of China’s OFDI were more significant for countries with weak governance,rich resource,and modest human capital,and were above the average level for Belt and Road Initiative(BRI)countries,African countries,and in the post-crisis era.Our research helps unravel the global significance of Chinese companies investing overseas and contributes to research on the growth effects of direct investment between developing countries.

An Empirical Study on the Relationship Between the Scale of International Students from ASEAN and China’s Outward Foreign Direct Investment

With the further development of economic globalization since the establishment of ties between China and the Association of Southeast Asian Nations(ASEAN) 30 years ago and the continuous increase in the scale of international students in China,the training of international talents has become an important approach to avoiding the risks of transnational investments.We established panel data by selecting variables from the period 2006 to 2017,including the scale of international students coming from ASEAN to China,the gross amount of China’s outward foreign direct investment(OFDI),and the GDP per capita of ASEAN countries to further explore the correlations among these variables.We applied a panel-vector autoregressive(PVAR) model to conducting a Granger causality test,a Gaussian mixture model(GMM) regression analysis,a Monte Carlo-based impulse response analysis,and variance decomposition of the data.The results show that the growth of OFDI exerted an obvious positive impact on the inflow of international students from the countries along the Belt and Road(B&R) within a short period,the growth of the scale of international students coming from these countries to study in China had a strong positive effect on OFDI,the training of international talents was conducive to promoting the scale of transnational investments,but the overall quality was not very high,and its economic contribution rate was low.It is also found that OFDI and the scale of international students from the countries along the B&R promoted the GDP growth to a certain extent and the positive accumulation effect fluctuated due to external factors.Therefore,it is suggested to expanding the scale of OFDI and improving China’s core competitiveness in international student education.Intensive management of investment factors should also be conducted along with sound development of training mechanisms for international talents.

Foreign Direct Investment with Chinese Characteristics:A Middle Path Between Ownership-Location-Internalization Model and Linkage-Leverage-Learning Model

The majority of multinational enterprises （MNEs） traditionally originate from developed countries. In the last ten years, however, there has been dramatic growth in foreign direct investment （FDI） from China. It is a comparatively new phenomenon that challenges the classic FDI theories. In this paper, we review the pros and cons of two important theories, known as the Owner- ship-Location-Internalization （0LI） model and Linkage-Leverage-Learning （LLL） model, and use the statistical data and company case studies from China to test the plausibility of these two models. We believe that neither of them suits totally： the OLI model is quite use- fill for understanding FDI from China to developing economies, while the LLL model is more powerful for explaining the FDI to de- veloped economies. We argue that the companies from China attain a very advantageous position as intermediates in the global economy They may catch up with the first movers if they integrate OLI-led and LLL-led FDI within one firm. This combination can bring to- gether the most advanced knowledge acquired in developed economies with the knowledge about adaptation needs and the needs for cost reduction in production as expressed in developing economies. It may also accelerate the knowledge transfer globally. We thus fill a gap in research into the geographical pattern of Chinese FDI and offer a deeper understanding of the internationalization of Chinese MNEs and revolving knowledge transfer.

Research Progress of Foreign Direct Investment and Global Value Chain Status

With the rapid development of globalization,the industries of various countries are actively seeking the best way to improve the global value chain(GVC)status while integrating into the world.As an important factor affecting the GVC status,foreign direct investment(FDI)has attracted extensive attention from scholars.On the basis of systematically summarizing the research progress of FDI theory,GVC status and the influence of FDI on GVC status,the paper tries to clarify the internal relationship between FDI and GVC status,explores the shortcomings of existing research,and puts forward the possible direction of future research.

Theoretical Explanation of China's Outward Direct Investment

Traditional foreign direct investment (FDI) theory only examines corporate investment motivation while neglectinggovernment roles.China’s outward direct investment (ODI) is of both commercial and strategic significance to leveragedomestic and international resources and markets.ODI is a corporate behavior but also is a means of achieving nationalstrategies and heightening political and economic statuses.As a source of ODI,China should provide strong guidance andbacking to corporate ODI for both commercial and national interests.

China＇s Direct Investment in Advanced Economies： the Cases of Europe and the United States

Chinese outward foreign direct has increased substantially in recent years, investment （OFDI） in developed economies driven by structural adjustments in China ＇s economy. This article describes the inflection point of Chinese investment in the European Union and the United States since 2008. A new data set is used to highlight similarities and differences of Chinese investment patterns in the world＇s two biggest economies. The second part examines the policy response on both sides of the Atlantic to promote investment from China and at the same time address political and economic risks related to these new flows.

Effects of investment on energy intensity:evidence from China

This article explores the effects of investment upon energy intensity by applying a unique panel data of China's 27 provinces between 2004 and 2013.In addition,it also particularly stuthes other factors,such as energy price,economic structure,and urbanization.The results,based on four econometric regression model results,suggest that in general,the indigenous investment on research and development is a more powerful tool to decrease China's energy intensity regardless of region disparity.The foreign direct investment(FDI) has a prominent but not persistent effect on energy intensity.However,the outward direct investment has not shown its significant impact on energy intensity.At the level of an aggregate economy and China's eastern region,the results demonstrate that FDI improves energy efficiency significantly.For the central and western provinces,FDI does not support the similar conclusion.Based on these analyses,we present the corresponding regional policies for policymakers.

Restructuring Versus Destructuring? the Hong Kong Textile and Clothing Industry

The purpose of the study was to examine the "push" factors, which are the factors explaining the phenomena of the moving out of the textile and clothing industry in Hong Kong. The focus was put on its relationship to the time and the decision preference level. Data were collected by a questionnaire survey with 85 successful replies. A three dimensional contingency table was formulated to analyse the situation.

Tech no logy Gap,Reverse Technology Spillover and Domestic Innovation Performanee in Outward Foreign Direct Investment:Evidenee from China

This research adds to the literature studying the effects of outward foreign direct investment(OF DI)on domestic innovation performance and the moderating effect of a technology gap between host and home countries.New definitions of observed technology gap and expected technology'gap are proposed.An observed technology gap captures the existing differences in technology level between establishments,regions or countries.An expected technology'gap is an indication of the effort of imitating and learning from technology leaders.The corresponding measures and effects of observed and expected technology gaps on OFDI-induced reverse technology spillover are analyzed.OFDI in developed countries promotes innovation performance.However,OFDI in emerging markets hampers innovation performance.It is also found that regions with a wider observed technology^gap and a narrower expected technology gap can benefit more from OFDI.

Forty Years Development of China's Outward Foreign Direct Investment:Retrospect and the Challe nges Ahead

Outwardforeign direct investment(OFDI)has increasingly become an important method for China to integrate into the world economy.This paper comprehensively reviews and analyzes policy development and the changing pattern of China's OFDI over the past 40 years.We divide the development into"restricted”(1978-1999),"relaxed"(2000-2016)and"regulated",(2017 onwards)stages.This paper also reviews literature on the impact of Chinese OFDI on China and host countries.Despite its generally positive effects,large-scale and unbalanced OFDI activities have alarmed Chinese policymakers.Both developing and developed host countries have expressed their concern over national security and the misbehavior of some Chinese overseas enterprises.Therefore,greater supervision and adjustment from quantity to quality growth is necessary for the future development of China's OFDI.

Can China's Diplomatic Partnership Strategy Benefit Outward Foreign Direct Investment?

In the context of global integration, whether a diplomatic partnership strategy can promote outward foreign direct investment (OFDI) and how it works are very important issues for China.Based on a dataset featuring China's partnerships collected from the Ministry of Foreign Affairs website,we establish an empirical framework to assess the role of China's diplomatic strategy in its OFDI arising from partnerships since 1993. The results show that the establishment or upgrade of partnerships has had a positive effect on Chinese firms' decisions on OFDI for at least the short term, especially for firms with higher demand for policy guarantees from the government, such as noncentral firms and non-Beijing firms. The results also show that the increase in OFDI is concentrated in host countries with higher political risks, such as developing countries, neighboring countries, and Belt and Road countries,which is consistent with China's diplomatic focus.Our research proves that China's diplomatic strategy can assist firms to invest abroad.

Impact of China＇s Outward Foreign Direct Investment on Its Regional Economic Growth

This paper investigates the impact of China＇s outward foreign direct investment （OFDI） on its economic growth. By using a provincial-level panel dataset and applying fixed- effects and instrumental variable regression techniques, the study finds that both OFDI from provincial firms and OFDI from state-owned enterprises have a positive impact on China＇s provincial economic growth. The positive impact of OFDI on provincial economic growth may be the result of reverse knowledge spillovers from OFDI to the home provincial economy through demonstration and imitation, labor movement, and backward and forward industrial linkages, thus increasing the productivity and the efficiency of home firms and promoting the growth of the home economy.

Chinese Outward Foreign Direct Investment and Industrial Upgrading from the Perspective of Differences among Countries

This paper constructs a two-sector model to identify the effects of outward foreign direct investment(OFDI)in different countries on China s industrial upgrading and conducts an empirical analysis using provincial-level panel data from 2003--2015.The results show that China can benefit firom industrial upgrading via OFDI in developed countries by way of reverse technology spillover:This effect is significant in the eastern region,but not in the central and western regions.China can also benefit from industrial upgrading via OFDI in developing countries and countries along the Belt and Road through marginal industrial transfer.This effect is more significant in the central region,followed by the western and eastern regions.Our results imply that China should promote technology-seeking OFDI in developed countries,and enhance efficiency-seeking OFDI in developing countries,especially in countries along the Belt and Road.

Heterogeneity in top management teams and outward foreign direct investment: evidenee from Chinese listed companies

Drawing upon the knowledge-based view and team learning,we investigated how heterogeneity in top man agement teams(TMTs)in China in flue nces global expansi on strategies.Using panel data from Chinese listed firms from 2008 to 2014,we found that TMT functional background heterogeneity could positively affect firms'commitment to outward foreign direct investment(OFDI),as the diversification of TMT members can enrich the team's knowledge,facilitate efficient team learning,and enhance the decision-making capacity on overseas expansi on.However,tenure heterogeneity may hinder knowledge acquisition and team learning among TMT members,hence undermining firms/OFDI commitment.

Does Foreign Direct Investment Affect the Growth of Local Firms? The Case of China's Electrical and Electronics Industry

Does foreign direct investment （FDI） into developing countries affect the growth of local firms in host countries？ Using a dataset of 38 sectors in China ＇s electrical and electronics industry, in this paper, we analyze whether FDI has a positive effect on loeal firms, with technology spillovers, added value and increasing total faetor productivity, or a negative, market stealing, effect. Estimating the relationship between growth of local firms and investment offoreign firms, our results show that FDI is likely to have a negative impact on the growth of local firms in sectors with large disparities in technology and less experience in business. Therefore, local firms lacking in technology need to find markets with no competition from foreign firms or determine strategies to compensate technology disparities.

Does Outward Foreign Direct Investment Facilitate China’s Export Upgrading?

This paper empirically investigates the impact of China’s outward foreign direct investment(OFDI)on its export sophistication.Using a provincial-level panel dataset and applying fixed effects and instrumental variable regression techniques,the study finds that,on average,OFDI has no significant impact on China s export sophistication.However,after the full sample is divided into different regions,the study finds that OFDI has a positive and significant impact on export sophistication in the developed coastal region,but no such impact is observed in the less developed inland regions.Further investigation using a panel threshold model reveals that only when GDP,per capita GDP,human capital,and the research and development intensity of a home economy reach a certain level can OFDI promote export sophistication.The findings suggest that accelerating economic development and increasing absorptive capacity can facilitate the contribution of OFDI to China’s export sophistication.