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Article

Spillover Effect of FDI on Food Exports: Based on Firm-Level Analysis in China

by 1,*, 2 and 2
1
Department of Agricultural Economics and Management, School of Management, 866 Yuhangtang Road, Zhejiang University, Hangzhou 310058, China
2
Department of Agricultural Economics and Management, School of Public Affairs, 866 Yuhangtang Road, Zhejiang University, Hangzhou 310058, China
*
Author to whom correspondence should be addressed.
Academic Editors: Hongmin Qin, Yu Yvette Zhang and Antonio Boggia
Sustainability 2021, 13(9), 4818; https://doi.org/10.3390/su13094818
Received: 24 March 2021 / Revised: 17 April 2021 / Accepted: 22 April 2021 / Published: 25 April 2021
(This article belongs to the Special Issue Resilience and Sustainability in Agricultural and Food Systems)
This paper examines the spillover effect of foreign direct investment (FDI) on Chinese domestic food exports under firm heterogeneity. By using a rich firm-level panel data of China’s food firms, the empirical analyses rely on the first-order difference generalized method of moments (GMM) for industry-level analysis, and Heckman’s two-stage method for firm-level analysis. The results show that the horizontal FDI led to a positive spillover effect on domestic food industry exports, varying across food subindustries. The paper also finds that a large part of the promotion effect is driven through extensive margin (the probability to export) instead of intensive margin (the quantities of exports) in firm-level analysis. The heterogeneous export spillovers across food firms are further considered to depend on their nature characteristics, like productivity, size, and ownership. Moreover, the heterogeneities of FDI origins and business purpose are confirmed to influence export spillovers. The estimation results are quite robust for different types of regression specifications and substitutions of variable measurement. These findings provide suggestions for decision-makers to carefully assess the impact of FDI and make policy for the sustainable development of domestic food exports. View Full-Text
Keywords: FDI; export spillover; heterogeneous firms; food export growth FDI; export spillover; heterogeneous firms; food export growth
MDPI and ACS Style

Jin, Y.; Chen, C.; Shi, Z. Spillover Effect of FDI on Food Exports: Based on Firm-Level Analysis in China. Sustainability 2021, 13, 4818. https://doi.org/10.3390/su13094818

AMA Style

Jin Y, Chen C, Shi Z. Spillover Effect of FDI on Food Exports: Based on Firm-Level Analysis in China. Sustainability. 2021; 13(9):4818. https://doi.org/10.3390/su13094818

Chicago/Turabian Style

Jin, Yue, Chen Chen, and Zhanyi Shi. 2021. "Spillover Effect of FDI on Food Exports: Based on Firm-Level Analysis in China" Sustainability 13, no. 9: 4818. https://doi.org/10.3390/su13094818

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