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The effects of outward FDI and export on firm productivity in emerging markets: Evidence from matching approach

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  • Zhou, Chao

Abstract

This study disentangles the effects of outward foreign direct investment (OFDI) and export on the productivity of Chinese manufacturing firms by using the propensity score matching approach with multiple treatments. Results show that just OFDI has a significant positive impact on firm productivity, but that the productivity effect of just export is insignificant. A complementarity exists between OFDI and export in improving firm productivity. Further, the effects of OFDI and export on firm productivity are different in high-tech and low-tech firms.

Suggested Citation

  • Zhou, Chao, 2020. "The effects of outward FDI and export on firm productivity in emerging markets: Evidence from matching approach," Economics Letters, Elsevier, vol. 195(C).
    • Handle: RePEc:eee:ecolet:v:195:y:2020:i:c:s0165176520302858
    DOI: 10.1016/j.econlet.2020.109462
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Cao, Qiang & Xu, Aiyan & Wang, Jiawen & Yu, Wenmei, 2024. "Influence of financial inclusion and industrial robots on the efficiency of China's OFDI: A heterogeneous spatial stochastic frontier analysis," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 996-1009.
    2. Zhou, Chao & Liao, Jinglin, 2024. "Home country digital finance development and post-entry internationalization speed of emerging market SMEs: Empirical evidence from China," International Review of Financial Analysis, Elsevier, vol. 91(C).
    3. Kacou, Kacou Yves Thierry & Kassouri, Yacouba & Evrard, Talnan Hongwopena & Altuntaş, Mehmet, 2022. "Trade openness, export structure, and labor productivity in developing countries: Evidence from panel VAR approach," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 194-205.
    4. Wang, Long & Ji, Wenjun & Zhang, Teng & Liu, Xiaoqian, 2025. "Does distance from government hinder enterprises’ OFDI？Evidence from China," Economic Systems, Elsevier, vol. 49(2).
    5. Zhao, Long & Fan, Di & Chen, Caleb Huanyong, 2026. "Access to finance and firm exporting: An inverted-U relationship," Research in International Business and Finance, Elsevier, vol. 81(C).

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    Keywords

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    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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