The impact of outward FDI on the performance of Chinese multinationals

Arbeitspapier

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 China's 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. Publication

Object Details

• ISBN: 978-952-323-012-5
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: BOFIT Discussion Papers ; No. 24/2014

Classification and Topics

• Classification: Wirtschaft ; Macroeconomic Issues of Monetary Unions
• Subject: outward FDI ; reverse spillovers ; performance ; Chinese multinationals

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cozza, Claudio ; Rabellotti, Roberta ; Sanfilippo, Marco
• Event: Veröffentlichung
• (who): Bank of Finland, Institute for Economies in Transition (BOFIT)
• (where): Helsinki
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/212810
• Last update: 10.03.2025, 11:43 AM CET