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Technology seeking, R&D localization and comparative advantage: evidence from Chinese R&D-oriented OFDI

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  • Feng Hu

Abstract

Using the logit model of discrete explained variable, this article explores the theoretical logic and underlying mechanism of Chinese outward foreign direct investment (OFDI) in developed countries. It finds that Chinese enterprises conduct R&D-oriented OFDI in countries with advanced technologies and rich R&D resources. These enterprises seek to learn applied rather than cutting edge technologies. Furthermore, Chinese R&D-oriented OFDI, which focuses on technology seeking and R&D localization, follows the principle of comparative advantage. The research provides new evidence for OFDI from China and a theoretical explanation of its underlying logic.

Suggested Citation

  • Feng Hu, 2023. "Technology seeking, R&D localization and comparative advantage: evidence from Chinese R&D-oriented OFDI," Applied Economics Letters, Taylor & Francis Journals, vol. 30(18), pages 2641-2646, October.
  • Handle: RePEc:taf:apeclt:v:30:y:2023:i:18:p:2641-2646
    DOI: 10.1080/13504851.2022.2102568
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