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FDI Spillovers and High-Quality Development of Enterprises—Evidence from Chinese Service Enterprises

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  • Pei Meng

    (School of Management, Wuhan University of Technology, Wuhan 430062, China)

  • Hongyi Xu

    (School of Management, Wuhan University of Technology, Wuhan 430062, China)

Abstract

The core of high-quality development lies in achieving long-term sustainability. In the context of China’s high-quality economic development and high-standard opening-up of the service industry, it is of great theoretical value and practical significance to study how service enterprises can effectively absorb foreign direct investment (FDI) spillovers to realize high-quality development and enhance sustainable value creation capability. Based on the panel data of A-share non-financial listed service enterprises in China, this study explores the impact of FDI on the high-quality development of service enterprises in China through various spillover channels, as well as the role of enterprise absorptive capacity in the relationship between FDI and high-quality development. The results show that horizontal and backward spillovers have a significant positive impact on the high-quality development of service enterprises, while forward spillovers have a significant negative impact. Heterogeneity analysis indicates that the promotion effect of horizontal spillovers is more pronounced on enterprises in the eastern region, capital-intensive enterprises, small and medium-sized enterprises (SMEs), and producer service enterprises. The promotion effect of backward spillovers is particularly evident for enterprises in the central and western regions, capital-intensive enterprises, SMEs, non-state-owned enterprises (non-SOEs), and producer service enterprises. The further threshold regression model finds that service enterprises with higher absorptive capacity benefit more through horizontal and vertical spillovers for their high-quality development.

Suggested Citation

  • Pei Meng & Hongyi Xu, 2025. "FDI Spillovers and High-Quality Development of Enterprises—Evidence from Chinese Service Enterprises," Sustainability, MDPI, vol. 17(7), pages 1-20, March.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:7:p:2806-:d:1617649
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    References listed on IDEAS

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