Does Outward Direct Investment Improve the Quality of China's Economic Growth?
- KONG Qunxi, CAI Meng & WANG Ziqi
- KONG Qunxi, CAI Meng (Nanjing University of Finance & Economics, 210003)WANG Ziqi (Nanjing University, 210093)
Whether Chinese outward direct investment is conducive to promoting the quality of economic growth has become a proposition that needs to be thoroughly studied in the face of Chinese scholars and policy makers. Using more than 250,000 entries of data about industrial enterprises between 2009 and 2013, and the propensity score matching method, we examined the effects of outward direct investment on the quality of economic growth from the regional and enterprise dimensions. The research findings are: (1) In general, outward direct investment can effectively improve the quality of economic growth. After considering the control variables, outward direct investment only has an inhibitory effect on economic growth efficiency. (2) Compared with enterprises without outward investment, outward investment enterprises have a significant positive effect on the quality of their own economic growth. (3) After considering the heterogeneity of the enterprises, regardless of the depth of investment, outward investment in developed countries and in trade sales are more conducive to improving the quality of economic growth of such investors. These findings provide not only empirical evidence for a comprehensive understanding of the outward direct investment behavior of Chinese enterprises, but also a realistic reference for China to develop a “quality” economy.
- Outward Direct Investment, Economic Growth Quality, Propensity Score Matching, Enterprise Heterogeneity