Abstract
This study investigates the nonlinear impact of corporate digital transformation on outward foreign direct investment (OFDI) in the context of Chinese A-share listed companies from 2013 to 2023. Employing a nonlinear model, this study reveals an N-shaped curve relationship between digital transformation and OFDI, wherein digital transformation initially promotes, then inhibits, and finally again promotes OFDI as it advances. The findings reveal that this effect is more pronounced for non-state-owned enterprises and companies located in China's eastern region. Moreover, reduced transaction costs are a significant mechanism through which digital transformation influences OFDI. The results underscore the necessity of developing differentiated strategies to enhance digital transformation across regions and ownership types, emphasizing its role in facilitating China's global investment initiatives and contributing to the high-quality development of the Belt and Road Initiative.
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