Title
The impact of outward FDI on the performance of Chinese multinationals The impact of outward FDI on the performance of Chinese multinationals
Author
Faculty/Department
Institute of Development Policy and Management
Publication type
report
Publication
Subject
Economics
Source (journal)
BOFIT Discussion Papers
Volume/pages
(2014) , p. 1-32
ISSN
1456-4564
1456-5889
ISBN
978-952-323-012-5
Article Reference
24
Carrier
E-only publicatie
Target language
English (eng)
Affiliation
University of Antwerp
Abstract
Using a new firm-level database, EMENDATA, this paper investigates the effects on Chinese multinational enterprises of Outward FDI (OFDI) into advanced European countries. Propensity score matching is combined with a difference-in-difference estimator to reduce the problems of self-selection of treated firms in foreign markets and to eliminate time-invariant and unobservable differences between those firms and the controls. The results provide robust evidence in support of the view that Chinas OFDI had so far a positive impact on domestic activities in enhancing firms productivity and scales of operation, as measured by assets, sales and employment. Distinguishing among such investments on the basis of entry mode shows that acquisitions facilitate early access to intangible assets but are detrimental to financial performance, whereas greenfield investments have a positive impact on the scale and productivity of Chinese investors.
Full text (open access)
https://repository.uantwerpen.be/docman/irua/362ea1/12a5106b.pdf
Handle