Total Factor Productivity and China’s Outward FDI: Based on a Firm-Level Empirical Investigation

DOI

10.2991/icesem-18.2018.93How to use a DOI?

Keywords

Enterprise heterogeneity; Outward Foreign Direct Investment; Total Factor Productivity; Probit Model

Abstract

Since the reform and opening up, China’s economy has achieved continuous development and an increasing flow of foreign direct investment. This study focuses on the impact of enterprises’ total factor productivity on the outward foreign direct investment of companies at a micro level. The data comes from Chinese manufacturing companies from 2005 to 2007. We use a Probit model to empirically test the impact of total factor productivity of Chinese manufacturing companies on their outward foreign direct investment decisions. The test results show the following evidence: firstly, the total factor productivity of an enterprise is an influencing factor of Chinese enterprises' outward direct foreign investment decisions; secondly, the higher the total factor productivity, the greater the probability of outward direct foreign investment.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xiaoxue Du
AU  - Juanli Lan
AU  - Nisha Jia
AU  - Chao Liu
PY  - 2018/08
DA  - 2018/08
TI  - Total Factor Productivity and China’s Outward FDI: Based on a Firm-Level Empirical Investigation
BT  - Proceedings of the 2018 2nd International Conference on Education Science and Economic Management (ICESEM 2018)
PB  - Atlantis Press
SP  - 409
EP  - 412
SN  - 2352-5398
UR  - https://doi.org/10.2991/icesem-18.2018.93
DO  - 10.2991/icesem-18.2018.93
ID  - Du2018/08
ER  -