Abstract
This study disentangles the effects of outward foreign direct investment (OFDI) and export on the productivity of Chinese manufacturing firms by using the propensity score matching approach with multiple treatments. Results show that just OFDI has a significant positive impact on firm productivity, but that the productivity effect of just export is insignificant. A complementarity exists between OFDI and export in improving firm productivity. Further, the effects of OFDI and export on firm productivity are different in high-tech and low-tech firms.
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