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 non‐central 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.     

Remedy or Poison: Impacts of China's Outward Direct Investment on Its Exports

During the past decade, China's outward direct investment (ODI) and exports have experienced rapid growth, drawing increasing attention to the relationship between them. Using the gravity model based on panel data on China's ODI and trade to 174 countries and regions during 2003–2012, the present paper investigates the impacts of China's ODI on exports. We find that China's ODI to a host country significantly promotes China's trade with that economy: a 10‐percent increase in ODI stock can lead to a 2.14‐percent increase in exports, a 2.07‐percent increase in imports and a 2.87‐percent increase in net exports. The scale of the host country's economy, its infrastructure and its distance to China also have significant impacts on China's exports. Therefore, growth in ODI will facilitate China's trade and integration into the global economy, and enhance industrial upgrading in China by transferring the low‐end industries abroad.     

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 from 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.     

Are Investment Promotion Agencies Effective in Promoting Outward Foreign Direct Investment? The Cases of Japan and Korea

In this paper we examine the role of investment promotion agencies (IPA) in promoting outward foreign direct investment (FDI) from Japan and Korea. Looking at two home countries enables us to control for both country‐pair time‐invariant characteristics and host‐country time‐varying characteristics. Our empirical results suggest that home‐country IPA tend to be more effective in promoting outward FDI in politically risky host countries. However, this finding depends on whether the home‐country firm is listed or unlisted. More specifically, we find that the positive effect of home‐country IPA on outward FDI in politically risky countries is limited to unlisted home‐country firms, which tend to be less productive.     

The Determinants and Motivations of China's Outward Foreign Direct Investment: A Spatial Gravity Model Approach

Abstract

The study attempts to investigate the features and determinants of China's outward foreign direct investment (OFDI) into 138 countries and Chinese firms' investment strategies over the 2003–2009 period using an augmented gravity model with spatial linkages. The respective evaluations of China's OFDI are indicative of the important role played by non-financial OFDI. At the same time, Chinese firms prefer to invest in high-tech industries in developed countries while also focusing on the extraction of natural resources around the world. The empirical findings show that the host country's economic size has a significantly positive effect in terms of promoting Chinese OFDI. Chinese firms favour a complex-vertical platform in the developed countries while they prefer a market potential foreign direct investment (FDI) surrounding the host developing countries and an export-platform FDI in the petroleum exporting countries based on the surrounding market potential effect and spatial effect. The fuel extraction motive plays a key role in China's OFDI in line with the realities of Chinese FDI strategies in recent years.     

Effects of Location Diversification and Corporate Governance on Multinational Enterprises' Financial Performance and Risk‐taking: Evidence from Taiwanese Enterprises

This study investigates the location choice performance of foreign direct investment (FDI) originating from small‐ and medium‐sized multinational enterprises established in newly industrialized economies. In this study we integrate location diversification, breadth and corporate governance to examine the performance of Taiwanese enterprises investing in Chinese mainland. Examining Taiwanese manufacturing enterprises from foundational, traditional and high‐technology aspects, our findings demonstrate the following: (i) diversifying the location choice negatively affects the return of assets; (ii) investments in regions with an abundant population positively affect the performance of Taiwanese traditional manufacturing enterprises; and (iii) a higher percentage of insider holdings in Taiwanese enterprises results in better FDI performance. We conclude that the performance of FDI originating from Taiwanese enterprises varies depending on industrial and governance characteristics. We suggest that the location choice for Taiwan FDI in Chinese mainland should be determined by the characteristics of the industry. Chinese mainland should attract multinational enterprises from emerging markets according to the characteristics of regions.     

美国对外直接投资的发展及对我国的启示

从2013年提出“一带一路”合作倡议以来，中国对“一带一路”沿线国家直接投资整体呈较快发展趋势，投资潜力日益凸显。但是总体上当前我国在“一带一路”的对外直接投资（OFDI）还存在着总体规模不大、整体质量有待提升、基础部分尚待夯实等问题。美国是目前世界上最大的对外直接投资国，通过对美国OFDI迅速成长的历史背景、发展历程、成长路径以及成功要素入手分析对中国的启示。     

Technology Gap,Reverse Technology Spillover and Domestic Innovation Performance in Outward Foreign Direct Investment: Evidence from China

This research adds to the literature studying the effects of outward foreign direct investment (OFDI) 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.     

东道国金融发展对中国企业对外直接投资的影响:二元边际与生产率门槛

文章基于中国上市企业2008-2015年对外直接投资数据，分析东道国金融发展在扩展边际和集约边际上对企业对外直接投资决策以及投资所需生产率水平的影响。研究发现，在不同生产率的企业中东道国金融发展的影响是异质性的。较高的金融发展水平会系统性地降低投资所需的生产率水平，进而促进中国企业对外直接投资的概率、次数和规模。进一步的研究还发现，在经济发展水平比中国高的东道国金融发展的生产率效应更显著，投资所需生产率下降得更多。尽管如此，高经济发展水平东道国的最低生产率门槛仍然高于低经济发展水平的东道国。控制了金融发展指标和企业全要素生产率的内生性后，结果依然稳健。     

Spatial Spillovers from Foreign Direct Investment: Evidence from the Yangtze River Delta in China

This paper examines the spatial externality from foreign direct investment on domestic firms. Using Chinese firm‐level data for 2004, and after accounting for an endogeneity problem, we find that foreign firms generate a significantly positive spillover effect on the regional productivity of domestic firms in similar counties and industries. Estimating a spatial‐autoregressive model, we further show that such local spillovers could transmit to domestic firms in other counties and industries through interactions among domestic firms. However, these spatial multiplier effects decline with distance, thereby reducing the foreign direct investment spillover effects for domestic firms in distant locations.     

日本对中小企业对外投资的政策支持分析

日本中小企业对外直接投资起步较晚，但发展较为迅速。究其缘由，这与日本政府实行的对外直接投资自由化措施、配套的保险和金融等方面的政策、有效的海外投资促进体系、完善的中小企业对外直接投资服务机构是分不开的。我国中小企业发展面临着与日本中小企业发展相似的投资环境．因此，研究日本对中小企业对外投资的政策支持对指导我国中小企业对外投资政策的制定具有重要的指导意义。     

Impact of Outward Foreign Direct Investment on Domestic R&D Activity: Evidence from Taiwan's Multinational Enterprises in Low‐wage Countries

This paper theoretically and empirically investigates the home‐country effects of a firm's outward foreign direct investment (OFDI) activity, specifically OFDI motivated by lower labor costs in the host country. A two‐country imperfect competition model is developed, and the interaction between a firm's R&D spending and its OFDI is examined. It is found that the relationship between a firm's OFDI and its domestic R&D is indeterminate because there is a complementary effect as well as a substitution effect induced by OFDI activity. Panel data on Taiwanese manufacturing firms from 1992–2005 are applied to test the validity of the theoretical results. The propensity score matching method is used to construct a comparison group without selection bias. Our empirical evidence reveals that a Taiwanese firm's OFDI is positively related to its domestic R&D spending, particularly in R&D‐intensive industries.     

Impact of Foreign Direct Investment and Export on Urbanization: Evidence from China

This paper investigates the impact of foreign direct investment (FDI) and exports on urbanization in China. Using prefecture city‐level panel data covering China's 262 prefecture cities for the period 2004–2013 and employing a dynamic panel system generalized method of moments model with instrumental variable regression techniques, our study finds that FDI and exports have, on average, played a significantly positive role in China's urbanization. However, the impacts of FDI and exports on urbanization vary across regions. FDI has a positive and significant impact on urbanization in the coastal region but has no impact on urbanization in the inland region. Exports have a positive and significant impact on urbanization in both the coastal and inland regions, but the effect is much larger in the coastal region than in the inland region. The results imply that further attracting FDI inflows and promoting exports will contribute to China's urbanization, especially for the inland region.     

Foreign Direct Investment and Trade Openness in Sub‐Saharan Economies: A Panel Data Granger Causality Analysis

This study uses annual balanced panel data for 25 sub‐Saharan African economies over the period 1977‐2009 to investigate the Granger causality relationship between trade openness and foreign direct investment (FDI) for the region. We took advantage of recent developments in econometric testing techniques for Granger noncausality heterogeneous panels that takes into consideration the effects of cross section dependence across the units of the panel data set to analyse the trade–FDI nexus in the region. The empirical result of this study reveals a bidirectional causal relationship between trade openness and foreign direct investment in sub‐Saharan economies. Concurrently, African countries should devote more emphasis for the promotion and attraction of FDI in order to expand their productive capacity to produce and export; in this way, by addressing supply‐side constraints, FDI will have positive multiplier effects on trade.     

Dynamic Relationships between Exchange Rates and Foreign Direct Investment: Empirical Evidence from Korea

This paper examines the short‐run and long‐run dynamic relationships between exchange rates and foreign direct investment (FDI) in Korea. Monthly data retrieved from the Bank of Korea from January 1999 to March 2012 are examined. A cointegration test, a vector error correction model, the Wald test and impulse responses techniques are applied to analyze the data. The present study finds that, first, long‐run causation between exchange rates and FDI flows exists, which implies that a change in exchange rates negatively affects FDI flows in the long run. Second, short‐run causation between exchange rates and FDI flows exists, which confirms that there is reciprocal feedback between the two variables. Finally, the study finds evidence of a structural break from the global financial crisis of 2007–2009 shock to FDI flows in Korea. An external shock affects changes in the endogenous variables and, thus, causes instability in the cointegrating vector in the system.     

外商直接投资对黄河流域经济带高质量发展研究——基于黄河流域地级市的实证分析

经济高质量是黄河流域经济高质量发展的重要基础,更是在南北经济分化背景下推动我国经济高质量发展的重要支撑.为探究外商直接投资(FDI)对沿黄河流域经济带高质量发展的影响,本文基于2009-2018年黄河流经的59个地级市面板数据,采用DEA-Malmquist指数模型测算黄河流域城市绿色全要素生产率,以此来衡量经济高质量发展状况.运用全样本和分样本面板回归探究外商直接投资对黄河全流域和对黄河上、中、下流经济高质量发展的影响.从全样本回归分析结果可知,外商直接投资能够促进沿黄河经济带整体经济的高质量发展,且政府在有效利用外资方面具有积极作用.黄河不同区域子样本的分析显示:外商直接投资对上游地级市的经济高质量发展并没有显著的促进作用,而对黄河中下游地区,该影响较为显著.基于此结果,本文根据不同地区情况探究其原因及影响传导机制,为黄河流域不同区域经济高质量发展提供参考,并为地方政府构建良好营商环境、合理引进外商直接投资、实现区域经济高质量发展提供参考和启示.     

改革开放30年我国农业发展的回顾与展望

对改革开放30年来我国农业发展取得的巨大成就和成功经验进行了简要回顾,在此基础上,结合国内外农业发展的新形势以及我国农业发展面临的问题,提出了我国未来农业发展的十大趋势,对推进新世纪、新阶段我国农业的又好又快发展具有积极参考价值。