TITLE:
The Parent Firms’ Reverse Spillovers of China’s Production-Oriented OFDI Enterprises: Evidence from Chinese Manufacturing Enterprises
AUTHORS:
Xueliang Yang
KEYWORDS:
Local Production Outward Foreign Direct Investment, The Parent Firms’ Reverse Spillover, Propensity Score Matching, DID
JOURNAL NAME:
Modern Economy,
Vol.8 No.4,
April
13,
2017
ABSTRACT: In recent years, the rise of Chinese investments
follows the provisions of the “Going Out” strategy. Whether this local
production foreign direct investment has a positive role in reverse spillovers
to the parent company? Does the theme of the “Industry hollow” which has been
caused great attention really existence? In this paper, we analyzed the reverse
spillover of local production outward foreign direct investment (OFDI) using
firm-level data from Chinese industrial enterprises in the period of 2000 to 2011.
We will separately analyze the problem from productivity, exports and the scale
of production. Combining with the method of propensity score matching and
difference in difference estimator, we find that the productivity, the scale of
production, and the export have all significantly improved no matter which data
sample we use. In general, the local production of OFDI has a positive effect
on the parent company; the Chinese government should encourage the enterprises
to go out.