Original scientific paper
https://doi.org/10.1080/1331677X.2021.1984268
The impact of two-way FDI on total factor productivity in China and countries of the belt and road initiative
Zhang Xiuwu
Huang Zhangmin
Jiang Sihan
Abstract
This study utilizes the DEA-Malmquist index method to measure
the total factor productivity of 36 Belt and Road countries and
establish a dynamic panel model. This study carries out an empirical analysis of whether two-way investment in China and the Belt
and Road Initiative can improve total factor productivity. First, the
technology spillover of the home country has a significant effect
on improving total factor productivity and the technical efficiency
index of countries along the route, while the technology spillover
of host countries has no significant effect on total factor productivity. Second, in Asia, the technology spillover of host countries
has a significant effect on total factor productivity, while the technology spillover of the home country has no significant effect on
total factor productivity. Finally, in Europe, the spillover effect of
technology in the home country is beneficial to the improvement
of resource allocation. Meanwhile, the spillover effect of technology in host countries is beneficial to the improvement of total
factor productivity and the technical efficiency index. Therefore,
China should continue to increase its investment in Belt and
Road countries.
Keywords
Belt and road initiative; two-way investment; total factor productivity
Hrčak ID:
302488
URI
Publication date:
31.3.2023.
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