Abstract
Whether foreign direct investment can promote enterprise productivity and high-quality development has not yet reached a consensus in academic circles. By using the samples of A-share listed companies in China from 2008-2019, this paper adopts Propensity Score Matching (PSM)—Multi-temporal Difference-in-Differences (DID) to examine empirically whether corporate OFDI contributes to the high-quality development of enterprises from the perspective of total factor productivity. The study finds that OFDI significantly improves the total factor productivity of enterprises. It has more effect on state-owned enterprises than on private enterprises, and more effect on enterprises in western regions than on those in eastern and central regions. However, the promotion effect is not present in non-central policy-supported manufacturing enterprises. Technological innovation, exploratory innovation, and exploitative innovation mediate the relationship between OFDI and enterprise high-quality development. This paper provides empirical evidence for how to better promote enterprise innovation strategy and high-quality development under the “dual circulation” development pattern.
Highlights
The report of the 19th National Congress of the Communist Party of China pointed out that China’s economy has changed from the stage of high-speed growth to the stage of high-quality development, guiding enterprises from simple expansion to connotative high-quality development
By using the samples of A-share listed companies in China from 20082019, this paper adopts Propensity Score Matching (PSM)—Multi-temporal Difference-in-Differences (DID) to examine empirically whether corporate Outward Foreign Direct Investment (OFDI) contributes to the high-quality development of enterprises from the perspective of total factor productivity
Column (1) in Table 4 shows that the regression coefficient of outward direct investment (OFDI) is significantly positive at the level of 1% (0.183, p < 0.01)
Summary
The report of the 19th National Congress of the Communist Party of China pointed out that China’s economy has changed from the stage of high-speed growth to the stage of high-quality development, guiding enterprises from simple expansion to connotative high-quality development.
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