Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2022.2139278
The combined effect of foreign direct investment on firm productivity
Yuanzhe Huang
Changbiao Zhong
Haowei Chen
Sažetak
This paper attempts to answer the economic implications of combining
inward foreign direct investment (IFDI) and outward foreign
direct investment (OFDI) by constructing a panel fixed
effects model using Chinese industrial firm-level data for the
period 1998–2013. Specifically, we focus on the impact of combining
IFDI and OFDI on firm productivity in China. We also introduce
interactive terms into the model to explore the direct and
indirect mechanisms through which IFDI and OFDI affect productivity
growth. The results show that IFDI and OFDI work together
to contribute to productivity growth by acting directly on the
level of technology, thereby increasing productivity. IFDI intensifies
market concentration, which in turn positively moderates the
relationship between OFDI and productivity. Furthermore, IFDI
moderates the financing constraints of firms, but has a weaker
effect; the easing of financing constraints facilitates the positive
impact of OFDI on productivity. Absorptive capacity favours IFDI
spillover, but OFDI inhibits absorptive capacity improvements. Our
in-depth analysis of the mechanism of the combined impact of
IFDI and OFDI on productivity reveals the objectives of using this
combination, thereby providing theoretical support and policy
recommendations for the implementation of this strategy.
Ključne riječi
Inward foreign direct investment (IFDI); outward foreign direct investment (OFDI); productivity; combined effect
Hrčak ID:
306703
URI
Datum izdavanja:
30.4.2023.
Posjeta: 501 *