Abstract
ABSTRACT This study empirically explores the impact of the Asian Infrastructure Investment Bank (AIIB) on outward foreign direct investment (OFDI). Based on data of Chinese cross-border investments during 2007–2020 obtained from the Bureau van Dijk (BvD) Zephyr database, we use a multi-period difference-in-differences estimation strategy to identify the construction of the AIIB throughout the period of 2014–2020. The results reveal that the establishment of the AIIB increases the possibility of China’s OFDI by an average of 15.45%; furthermore, the number of China’s OFDI projects arises by 20.40% and the amount of China’s OFDI flows boosts by 23.04% on average. Moreover, the heterogeneity analyses show that the AIIB prompts more OFDI flows to countries with higher economic developments, especially those technology- and export-oriented ones.
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