2021
DOI: 10.1108/ijoem-01-2020-0076
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Outward FDI and productivity spillovers in China: an industrial perspective

Abstract: PurposePrior research demonstrated that China's Outward FDI (OFDI) is aimed at sustaining long-term economic growth by promoting industrialization and technological upgrading in the country. However, empirical evidence on the effectiveness of this strategy remains scarce. This study intends to fill this gap by exploiting endogenous changes in industrial productivity stemming from OFDI to examine if China's new strategy to spur OFDI is economically beneficial for the industries involved.Design/methodology/appro… Show more

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Cited by 5 publications
(2 citation statements)
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“…The literature has affirmed the positive mechanism of GTI in the upgrading of GVCs. At the early stage of industrial development, late-developing countries start from the specialization stage, gradually build up the initial technical base and production capacity by introducing mature technology and production equipment, and carry out imitative innovation with the technological spillover effect of imports and two-way foreign investment [58,59]. The industry should focus on process upgrading rather than product upgrading, and even a certain degree of functional upgrading [9].…”
Section: Theoretical Analysis Of the Moderating Effect Of Green Techn...mentioning
confidence: 99%
See 1 more Smart Citation
“…The literature has affirmed the positive mechanism of GTI in the upgrading of GVCs. At the early stage of industrial development, late-developing countries start from the specialization stage, gradually build up the initial technical base and production capacity by introducing mature technology and production equipment, and carry out imitative innovation with the technological spillover effect of imports and two-way foreign investment [58,59]. The industry should focus on process upgrading rather than product upgrading, and even a certain degree of functional upgrading [9].…”
Section: Theoretical Analysis Of the Moderating Effect Of Green Techn...mentioning
confidence: 99%
“…Firms with higher profits will tend to increase R&D investment, update equipment, and introduce talents to strengthen their international competitiveness and optimize their product value chain. Drawing on the calculation method of Ali et al (2021) [59], the total industry profit is used to measure profit revenue.…”
Section: Control Variable Selectionmentioning
confidence: 99%