TITLE:
How Firm Heterogeneity Affects OFDI Domestic Performance?
AUTHORS:
Xue Wang, Liyan Liu
KEYWORDS:
Firm Heterogeneity, OFDI, Domestic Performance
JOURNAL NAME:
Journal of Service Science and Management,
Vol.14 No.3,
June
3,
2021
ABSTRACT: This study was set out to identify the linkage between firm heterogeneity and domestic performance. Chinese firm level data from OFDI firms in manufacturing industry are applied from year 2011 to year 2013, factors as assets level, employment scale, market sales, profit level, salary level, import and export, destinated countries OFDI, sectors of investment are investigated with fixed effect panel data model. Output is used to signify firm’s performance, and the sum of firm’s import and export are applied to signify firms’ international connection. Findings show that market sales and salary level presented a significant positive impact on the firms’ output, while number of employees, profit level and international connections presented a negative effect on the growth of output. The assets and exporting status presented an unclear effect. The growth of output is also affected by the destinated country of OFDI and the sectors invested.