Search Results (46)

Against the backdrop of the global green transition and China’s pursuit of high-quality opening-up, examining whether green industrial policy can improve firms’ OFDI performance is important for understanding how domestic green transformation can be translated into international competitive advantages. Firms’ OFDI performance is not only related to the long term returns of firms’ cross border operations, but also reflects the effectiveness of a country’s opening up strategy. Using Chinese A share listed manufacturing firms from 2010 to 2024 as the research sample, this study constructs a multi period difference in differences model to systematically examine the impact of Green Factory certification on firms’ OFDI performance. The results show that Green Factory certification significantly improves firms’ OFDI performance. This conclusion remains robust after a series of tests, including the parallel trend test, heterogeneous treatment effect identification, and instrumental variable estimation. Further mechanism analysis indicates that Green Factory certification promotes the improvement of OFDI performance mainly through two channels, namely enhancing total factor productivity and strengthening the green innovation-driven effect. The moderating effect results show that overseas investment experience strengthens the positive effect of Green Factory certification on OFDI performance. The heterogeneity analysis further suggests that the performance-enhancing effect is more evident among firms adopting wholly owned entry modes, firms operating in heavily polluting industries, non-state-owned firms, and firms investing in host countries with higher environmental performance. This study contributes to the literature on environmental regulation, green innovation, and international business by showing that Green Factory certification functions not only as a green industrial policy tool, but also as both an institutional signal and a capability-building mechanism, helping to convert firms’ green transformation capabilities into international performance advantages. Full article

As climate conditions become increasingly extreme, greater emphasis should be placed on environmental considerations in outward investment to achieve sustainable green development for Chinese enterprises. Therefore, based on panel data of Chinese listed enterprises from 2008 to 2023, this study examines the impact of Outward Foreign Direct Investment (OFDI) and climate policy uncertainty (CPU) on corporate green total factor productivity (GTFP). The findings indicate that OFDI significantly enhances GTFP, but CPU weakens this positive effect. Mechanism analysis reveals that OFDI improves corporate GTFP through promoting green management innovation, deepening digital transformation, and increasing green investment, while CPU exerts negative effects by undermining these mechanisms. Heterogeneity analysis shows that the effect of OFDI is more pronounced for enterprises in eastern regions, non-heavy-pollution enterprises, and low-carbon-intensity enterprises. Furthermore, spillover effect analysis demonstrates that OFDI’s impact on corporate GTFP exhibits significant spatial boundary characteristics and time-varying evolutionary patterns. Finally, external incentives (government environmental subsidies) and internal drivers (climate risk) can hedge against the negative effects of the interaction between CPU and OFDI. Full article

In the context of the global sustainability agenda, firms are increasingly expected to incorporate environmental considerations into their global expansion strategies. However, existing studies mainly focus on formal institutions and economic factors, while the role of informal institutions remains underexplored. This study examines how Confucian cultural values influence Chinese firms’ outward foreign direct investment (OFDI), particularly their investment behavior in environmentally stringent host countries, such as Germany, Sweden, and Canada. Using panel data of Chinese A-share listed firms from 2009 to 2024, this study employs panel regression analysis to test the effects of cultural values, environmental pressure, and CEO power. The results show that cultural values are positively associated with both OFDI intensity and the likelihood of investing in environmentally stringent countries. In addition, environmental pressure strengthens this relationship, whereas CEO power weakens it. This study contributes to the literature on responsible global expansion by highlighting the role of informal institutions and firm-level characteristics. The findings also provide practical implications for policymakers and firms seeking to promote environmentally responsible international investment behavior. Full article

Chinese multinational enterprises, as the most active emerging-market investors, face mounting challenges in sustaining outward foreign direct investment (OFDI) under increasingly volatile global environments, yet how ESG performance shapes firms’ capacity to withstand and recover from external shocks remains poorly understood. This study investigates whether and how ESG performance enhances the OFDI resilience of Chinese multinational enterprises across the resistance phase and the recovery phase. We hypothesize that ESG performance enhances OFDI resilience through phase-specific mechanisms: in the resistance phase, ESG functions as a static resource buffer grounded in the resource-based view, while in the recovery phase, it operates as a dynamic reconfiguration mechanism consistent with the dynamic capabilities view. Using a panel dataset of 19,691 firm-year observations from Chinese A-share listed firms spanning 2008 to 2024, we employ a fixed-effects panel model to test these hypotheses. The results show that ESG performance significantly enhances OFDI resilience in both phases, and this conclusion holds after robustness and endogeneity tests. Mechanism analysis reveals that green innovation mediates the effect in both the resistance and recovery phases, while supply chain resilience and investment efficiency serve as additional mediating channels exclusively in the resistance phase. By introducing a phase-dependent perspective and highlighting ESG’s distinct roles across shock stages, this study provides practical guidance for emerging-market multinational enterprises on how to leverage ESG performance to build sustainable OFDI resilience in volatile global environments. Full article

Cross-border e-commerce, as a vital form of digital trade, is emerging as a new engine for corporate internationalization. This study employs China’s cross-border e-commerce pilot zones (established since 2015) as a quasi-natural experiment to investigate their causal effects on Chinese cities’ outward foreign direct investment (OFDI) and the underlying mechanisms. Distinct from previous trade-focused studies, this paper innovatively adopts a greenfield investment perspective. By integrating the Global Greenfield Investment Database (2010–2022) with the China City Statistical Yearbook, we constructed a greenfield OFDI dataset spanning the city–destination–target industry dimensions. Based on this dataset, this study employs a time-varying DID approach combined with PSM-DID, parallel trend tests, and placebo tests to empirically analyze how cross-border e-commerce development influences OFDI and its underlying mechanisms. The findings reveal that establishing cross-border e-commerce pilot zones boosts local outward investment by approximately 18.8%. A binary marginal decomposition analysis indicates that this effect primarily manifests through the extensive margin—significantly driving investment into new destination markets. Additionally, the mechanism operates by reducing information search costs and enhancing factor allocation efficiency. Furthermore, the outward investment promotion effect of cross-border e-commerce pilot zones is more pronounced in samples where the destination is a developed country, the target industry is high-tech, and the origin is eastern China. This study not only expands the dimensions for assessing the economic effects of cross-border e-commerce but also provides concrete empirical evidence for governments to optimize digital trade policy arrangements and for enterprises to leverage digital tools to overcome the “Liability of Foreignness” and achieve internationalization. Full article

As China has increased implementation of its opening-up strategy and the “Belt and Road” initiative, Chinese enterprises have encountered significant historical opportunities to expand their outward foreign direct investment (OFDI). However, international organizations and major nations are increasingly focusing on nonfinancial indicators for multinational corporations; as a result, enterprises frequently encounter social responsibility crises in cross-border investments. Consequently, Chinese firms must enhance their environmental, social, and governance (ESG) practices to bolster their comprehensive competitiveness, which is crucial for promoting successful international engagement and sustainability. This research explores the U-shaped relationship between ESG performance and OFDI, examining how different stages of the corporate lifecycle affect OFDI. The findings indicate that ESG investments compete with OFDI for internal resources during the introduction, growth, and decline phases, thereby inhibiting OFDI activities. In contrast, strong ESG performance in the maturity phase provides a competitive advantage in international markets, facilitating OFDI. The empirical analysis uses a fixed-effects model on a sample of Chinese A-share-listed companies from 2009 to 2022 and employs the PSM, 2SLS, and System GMM methods to test for endogeneity. The results reveal that (1) a positive U-shape relationship between ESG performance and corporate OFDI, and the inflection point occurs when the ESG score equals 69.04. Moreover, (2) the corporate lifecycle intensifies this nonlinear relationship, with growth-phase firms showing a significant inhibitory effect and mature-phase firms showing a pronounced promotional effect. Finally, (3) the U-shaped relationship between ESG performance and corporate OFDI is more pronounced in nonstate-owned enterprises. Based on these findings, this paper provides targeted policy recommendations for enterprises and governments. Full article

This study uses provincial panel data from China (2014–2022) to examine the effect of agricultural outward foreign direct investment (OFDI) on agricultural imports. Employing panel regression, mediation effect, and spatial Durbin models, it explores the underlying mechanisms, spatial spillover effects, and regional heterogeneity, while emphasizing the role of OFDI in building sustainable agricultural supply chains. The results show that: (1) OFDI significantly promotes agricultural imports, enhancing the stability and diversity of the domestic supply, supporting food security, and facilitating the sustainable allocation of resources. (2) Mechanism analysis reveals that OFDI affects imports through reverse technology spillovers and improved international relations. (3) Heterogeneity analysis indicates that OFDI exerts stronger influence in major grain-marketing areas, production–marketing balance regions, and provinces along the Belt and Road, compared with grain-producing areas and non-Belt and Road provinces. (4) Spatial analysis based on the 0–1 adjacency matrix reveals that agricultural imports across Chinese provinces exhibit significant positive spatial autocorrelation. Furthermore, OFDI not only directly promotes agricultural imports within a given province but also generates notable positive spatial spillover effects, whereby OFDI in neighboring provinces likewise exert a positive influence on the province’s agricultural imports. To enhance the import effect of agricultural OFDI and stabilize the domestic supply of agricultural products, policy implications suggest that the government should adhere to the agricultural “going global” strategy, enhance enterprises’ capacity to absorb reverse technology spillovers, and explore regionally differentiated pathways for agricultural OFDI, among other policy recommendations. Full article

The advancement of green energy is a crucial mechanism for balancing economic growth with environmental sustainability, helping to mitigate conflicts between development and ecological preservation. This paper assesses the policy effects of the Belt and Road Initiative (BRI) on China’s overseas green energy projects (including gas) using the difference-in-difference (DID) model from 2009 to 2022. The findings show that, overall, the BRI has notably augmented China’s green energy projects in the BRI countries. This result remains robust after excluding potential interference from Nationally Determined Contributions (NDCs). Specifically, its promotional effect shows heterogeneity. Firstly, the BRI has shown significant regional differences in promoting the development of China’s overseas green energy projects. Secondly, the BRI is more effective in promoting green energy projects in developing and low-risk countries compared to developed and high-risk countries. Additionally, it indicates that the BRI boosts green energy projects in BRI countries by enhancing their infrastructure quality, encompassing transportation, energy, communication, and financial infrastructure. Finally, based on the above findings, this paper provides context-specific recommendations aimed at enhancing the effectiveness of the BRI in promoting sustainable green energy cooperation. Full article

In the context of both domestic and international economic landscapes, regional policy has emerged as an increasingly influential factor shaping the developmental trajectories of Chinese enterprises. Despite its growing significance, the extant literature lacks a comprehensive and systematically visualized synthesis that encapsulates the scope and trends of research in this domain. This study addresses this critical gap by conducting an integrative bibliometric and qualitative review of the academic output related to regional policy and Chinese firm growth. Drawing on a final dataset comprising 3428 validated academic publications—selected from an initial pool of 3604 records retrieved from the Web of Science Core Collection between 1991 and 2022, the research employs a two-stage methodological framework. In the first phase, advanced bibliometric tools, and software applications, including RStudio, Bibliometrix, VOSviewer, and CitNetExplorer, are utilized to implement techniques such as keyword co-occurrence analysis, thematic clustering, and the tracing of thematic evolution over time. These methods facilitate rigorous data cleansing, breakpoint identification, and the visualization of intellectual structures and emerging research patterns. In the second phase, a targeted qualitative review is conducted to evaluate the influence of regional policies on Chinese firms across three critical stages of business development: start-up, expansion, and maturity. The findings reveal that regional policy interventions generally exert a positive influence on firm performance throughout all stages of development. Notably, a significant concentration of citation activity occurred prior to 2017; however, post-2017, the volume of scholarly publications, journal-level impact (as measured by h-index), and author-level influence experienced a marked increase. Among the 3428 analyzed publications, a substantial portion—2259 articles—originated from Chinese academic institutions, highlighting the strong domestic research interest in the subject. Furthermore, since 2015, there has been a discernible shift in keyword co-occurrence trends, with increasing scholarly attention directed towards sustainable development issues, particularly those related to carbon dioxide emissions and green innovation, reflecting evolving policy priorities and environmental imperatives. Full article

The purpose of this paper is to analyze how China’s outward foreign direct investment (OFDI), driven by different motivations, affects the bilateral global value chain (GVC) relationship between the home country (China) and host countries, evaluating both bilateral GVC trade value and relative GVC positions. Employing the OECD Trade in Value Added (TiVA) database combined with Chinese listed firm data, we found the following results: (1) Strategic asset-seeking OFDI strengthens the GVC relationship between China and host countries while enhancing China’s GVC position relative to host countries. (2) Efficiency-seeking OFDI increases the domestic value-added exported from host countries to China but does not improve China’s relative GVC position. (3) Natural resource-seeking OFDI enhances bilateral GVC trade volumes but has no significant impact on the relative GVC positions of China and host countries. (4) China’s OFDI, not driven by these motivations, generates a trade substitution effect between home and host countries. We also examined the heterogeneity of these effects. Our findings suggest that China’s OFDI fosters equitable and sustainable international cooperation, supports mutually beneficial GVC trade and host-country economic growth, and therefore, progresses toward Sustainable Development Goal (SDG) 8. Full article

Under the pressure of the global low-carbon transition, green initiatives have gradually emerged as a critical direction for outward foreign direct investment (OFDI). In the context of China’s high-level opening up, environmental, social, and governance (ESG) performance can promote sustainable development of firms. However, there is lack of research on the influence of ESG performance from the perspective of corporate green OFDI. This study examines the impact mechanism of ESG performance on corporate green OFDI in terms of its propensity and depth, using a sample of Chinese A-share listed firms from 2009 to 2023. The findings indicate that ESG performance promotes corporate green OFDI, a result that remains robust after a series of endogeneity and robustness tests. The internal mechanism analysis reveals that ESG performance enhances corporate green OFDI by reducing financing constraints and managerial myopia and by promoting risk-taking and foreign institutional investors’ shareholdings. The external mechanism analysis verifies that ESG institutional constraints in the home country and ESG locational advantages in host countries strengthen the positive effect of ESG performance on corporate green OFDI. Further analysis shows that ESG performance facilitates corporate green innovation development through collaborative and independent innovation by promoting corporate green OFDI. By extending the theoretical understanding of the impact of ESG performance on the process of corporate green OFDI, this study provides strategic guidance for the sustainable development of firms in China and other similar developing countries. Full article

Digital transformation has become a crucial strategic decision for enterprises to strengthen international competitiveness and achieve sustainable development. This study aims to investigate the impact of digital transformation on outward foreign direct investment (OFDI) performance and the conditions that influence this relationship using the ordinary least-squares regression estimation method and the data of Chinese A-share listed enterprises. The results show that digital transformation improves OFDI performance. The mechanism analysis verifies that digital transformation enhances OFDI performance by promoting corporate reputation and innovation. The moderating analysis demonstrates that the host country’s digital infrastructure negatively moderates the positive relationship between digital transformation and OFDI performance, while diplomatic relations between home and host countries play a positive moderating role. The heterogeneity analysis reveals that state-owned, labor-intensive, and technology-intensive enterprises and enterprises investing in non-Belt-and-Road countries benefit more from digital transformation to promote OFDI performance. This study extends the OFDI theory of emerging market enterprises in the context of digital transformation and provide practical implications for improving the OFDI performance of multinational enterprises. Full article

China’s agricultural OFDI has achieved a new promotion of regional opening to the RCEP agricultural field, and the bilateral agricultural trade cooperation has great potential. China’s agricultural OFDI has been steadily increasing in recent years. As significant trade partners for Chinese agricultural products, RCEP countries represent an important region for China’s agricultural OFDI initiatives. However, existing studies have paid little attention to the trade effect and dynamic impact of China’s agricultural OFDI on agricultural products of RCEP countries. Therefore, based on the panel data of agricultural trade between China and RCEP countries from 2004 to 2019, this paper uses the trade gravity model and TVP-VAR model to investigate the time-varying effects of China’s agricultural OFDI on agricultural trade of RCEP countries. The findings are as follows: (1) The impact of China’s agricultural OFDI on bilateral agricultural trade between China and RCEP countries has significant time-varying characteristics, and there are short-, medium-, and long-term positive impacts most of the time. (2) When the bilateral agricultural trade reaches a certain level, the role of China’s agricultural OFDI is limited, but the overall positive and significant impact remains, showing a strong trade effect. (3) The positive impact on China’s agricultural OFDI has a heterogeneous impact on RCEP countries with different income levels and geographical connections, but the overall positive externality effect is significant. The research conclusions expand the research perspective on the trade effect of agricultural OFDI to a certain extent and provide management and policy implications for agricultural enterprises to “move fast” and promote the sustainability of bilateral agricultural trade between China and RCEP countries through government efforts. Full article

Numerous studies have explored the impact of Outward Foreign Direct Investment (OFDI) on upgrading industrial structures in home countries. However, a notable gap exists in the literature regarding the reverse relationship. Based on the cross-border greenfield investment data of Chinese provinces in Association of Southeast Asian Nations (ASEAN) countries from 2003 to 2021, this study employed the Ordinary Least Squares (OLS) model to evaluate the impact of industrial upgrading in each province on OFDI to address this gap. The findings suggest that China’s industrial structure upgrading significantly promotes OFDI toward ASEAN countries, though the effect varies by region within China and by the income levels of host countries. Regionally, industrial upgrading in eastern China notably stimulates OFDI growth, while the effect is not significant in the central and western regions, reflecting inconsistent evolution of industrial structures in various regions. Regarding host country income levels, the promotion effect of industrial structure upgrading on OFDI is influenced by the economic development level of the host country. Furthermore, we find that R&D intensity acts as a moderator that links industrial structural upgrading to OFDI responses. These findings withstand robustness checks, including tests for endogeneity. Ultimately, this study provides policy insights for strengthening the virtuous cycle between industrial upgrading and OFDI. Full article

The potential risks arising from excessive supply chain concentration have received more and more attention. In practice, high supply chain concentration hinders firms’ sustainable development, especially for firms in emerging markets. However, how to reduce supply chain concentration remains an underexplored problem. Outward foreign direct investment (OFDI) has been an important strategy for firms to reallocate and optimize their supply chain relationships. Thus, we tried to explore whether OFDI can serve as an effective method to reduce supply chain concentration by analyzing their relationship. Using the data of Chinese A-share listed firms from 2008 to 2022, this paper empirically examines the impact of OFDI on supply chain concentration through a two-way fixed-effects model. We find that OFDI significantly reduces supply chain concentration, and this conclusion still holds after using alternative measures of the independent variable and dependent variable, endogeneity treatment, the Heckman two-stage model test, controlling for provincial factors, and excluding special samples. Channel analysis reveals that OFDI reduces supply chain concentration mainly through increasing market share, enhancing innovation capacity, and improving reputation. Cross-sectional analysis shows that the negative effect of OFDI on supply chain concentration is more pronounced in state-owned firms, firms under high industry competition, and high-tech firms. Our findings have important implications for firms to build sustainable supply chain relationships and strengthen supply chain resilience, and for policymakers to guide OFDI reasonably. Future research could further explore the effect of firms’ investment decisions on supply chain configuration. Full article