Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212810 
Year of Publication: 
2014
Series/Report no.: 
BOFIT Discussion Papers No. 24/2014
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
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
Subjects: 
outward FDI
reverse spillovers
performance
Chinese multinationals
JEL: 
F45
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-012-5
Document Type: 
Working Paper

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