Does technology-seeking OFDI improve the productivity of Chinese firms under the COVID-19 pandemic?
GLOBAL FINANCE JOURNAL 2022;
51:100675. [PMID:
38620909 PMCID:
PMC8464020 DOI:
10.1016/j.gfj.2021.100675]
[Citation(s) in RCA: 2] [Impact Index Per Article: 1.0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Received: 12/04/2020] [Revised: 09/05/2021] [Accepted: 09/10/2021] [Indexed: 06/05/2023]
Abstract
This paper empirically investigates the impact of technology-seeking outward foreign direct investment (OFDI) on firms' productivity under the influence of negative external shocks, taking as a sample the investment data of Chinese firms before and during COVID-19. The results show that technology-seeking OFDI improves productivity, but not under negative external shocks. The dampening effect of such shocks is more significant when the host country is a developed country and in firms with multiple branches. Technology-seeking OFDI particularly improves the productivity of research and development and processing firms, and (among the productivity measures tested) most prominently affects total factor productivity.
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