How does Outward Foreign Direct Investment Affect Enterprise Green Technology Innovation? — Based on the Moderating effect of Resources

Direct Investment ◽

Technology Innovation ◽

Transition Process ◽

Green Technology ◽

Moderating Effect ◽

Regulatory Effect ◽

Absorbed Slack ◽

Unabsorbed Slack

Abstract with the increasing strict environmental regulations in the green transition process, outward foreign direct investment is considered to be an effective approach to promote enterprises’ green technology innovation. Thus, this paper establishes a comprehensive research framework that integrates OFDI and green technology innovation from the micro level of the enterprise to analyze it. The findings show that: First, OFDI will positively affect corporate green-tech innovation as expected; Government subsidies have a U-shaped regulation on the relation between OFDI and green-tech innovation; Absorbed slack plays an inverted U-shaped moderating effect on the relation between OFDI and green-tech innovation, and the unabsorbed slack positively affect this process. As for the heterogeneity of property rights, the test results of non-state-owned enterprises and state-owned enterprises are basically consistent with the baseline results, except for the following two points: the unabsorbed slack of state-owned enterprises has no regulatory effect between OFDI and enterprise green technology innovation, and the absorbed slack of non-state-owned enterprises has no regulatory effect between OFDI and enterprise green technology innovation.

Just Look behind the Data! Czech and Hungarian Outward Foreign Direct Investment and Multinationals

Acta Oeconomica ◽

10.1556/032.2019.69.s2.4 ◽

2019 ◽

Vol 69 (S2) ◽

pp. 73-105 ◽

Cited By ~ 1

Author(s):

Magdolna Sass ◽

Jana Vlčková

Keyword(s):

Direct Investment ◽

Transition Process ◽

Balance Of Payments ◽

Foreign Direct Investments ◽

Outward Fdi ◽

Foreign Investors ◽

The Czech Republic ◽

Main Factors

There has been an increase in outward foreign direct investment (FDI) and in the number of locally-owned or controlled multinationals in the Czech Republic and Hungary. However, data problems hinder to determine accurately the underlying trends and the main factors behind the changes. Data on outward FDI contain investment realised by all locally operational firms, regardless of their ownership. We rely on newly available balance of payments manual 6 (BPM) data and on company case studies. We show that outward investment by Czech firms must be much higher than what balance of payments data show. Hungary's case is the opposite. The leading Czech and Hungarian foreign investor firms can be categorised as “virtual indirect” foreign investors: they are in majority foreign ownership, but under domestic control. The reason for this special type of firms dominating in outward foreign direct investments can be found in the privatisation technique applied in these countries during the transition process.

Does China’s OFDI Successfully Promote Environmental Technology Innovation?

Complexity ◽

10.1155/2021/8389560 ◽

2021 ◽

Vol 2021 ◽

pp. 1-13

Author(s):

Bing Han

Keyword(s):

Economic Development ◽

Intellectual Property ◽

Direct Investment ◽

Technology Innovation ◽

Threshold Effect ◽

Intellectual Property Protection ◽

Reference Points ◽

Environmental Technology

Environmental technology innovation is a crucial measure of the quality of China’s economic development and sustainable environmental protection. Based on the 2009–2017 provincial panel data from China, this article used the modified projection pursuit model to measure the environmental technology innovation capabilities of various regions. Moreover, this article empirically investigates the threshold effect of outward foreign direct investment on China’s environmental technology innovation under different intellectual property protection levels. The results are as follows. First, the environmental technology innovation capabilities of China’s regions vary significantly, showing an “east-middle-west” gradient decline trend similar to levels of economic development. Second, outward foreign direct investment has a significant reverse environmental technology innovation effect, but this effect has complex nonlinear characteristics. Third, in the process of outward foreign direct investment affecting environmental technology innovation, intellectual property protection has a significant double threshold effect. As the level of intellectual property protection continues to cross the threshold value, the effect direction of outward foreign direct investment on environmental technology innovation undergoes a sudden change from inhibition to promotion. However, when intellectual property protection is too high, the promotion effect is relatively limited. This paper provides some reference points and insights that should aid in establishing a scientific intellectual property protection system and raising the level of environmental technology innovation.

Psychic distance and outward foreign direct investment: the moderating effect of firm heterogeneity

Management Decision ◽

10.1108/md-06-2019-0731 ◽

2020 ◽

Vol 58 (7) ◽

pp. 1497-1515

Author(s):

Chusheng Chen ◽

Yun Zhan ◽

Changjun Yi ◽

Xue Li ◽

Yenchun Jim Wu

Keyword(s):

Emerging Economies ◽

Direct Investment ◽

Multinational Firms ◽

Firm Heterogeneity ◽

Moderating Effect ◽

Psychic Distance ◽

Content Type ◽

Foreign Experience

PurposeThis study investigates the effect of psychic distance (PD) on outward foreign direct investment (OFDI) by multinational firms originating in emerging economies and the moderating effect of firm heterogeneity on this relationship.Design/methodology/approachAn empirical analysis based on a negative binomial regression model is conducted using OFDI data from 2008 to 2017 on companies listed on the Shanghai and Shenzhen Stock Exchanges in China, an emerging economy.FindingsThe results suggest a U-shaped relationship between PD and OFDI by firms in emerging economies. Both executive foreign experience and state ownership negatively moderate the U-shaped relationship between PD and OFDI.Practical implicationsEmerging economies should encourage and guide multinational firms in engaging in OFDI and emphasize the advantages and disadvantages of PD for multinational firms. Additionally, non-sate-owned firms should recruit those who have a foreign education to provide support for OFDI by firms in emerging economies. Multinational firms should determine investment locations by consulting with executives with foreign experience to improve their ability to engage in OFDI.Originality/valueThis study combines macro and micro perspectives and integrates PD and firm heterogeneity into the same model with a sample of multinational firms originating in China. The findings support the existence of a PD paradox, which helps to enriching the theory on foreign direct investment.

Does the Impact of China’s Outward Foreign Direct Investment on Reverse Green Technology Process Differ across Countries?

Sustainability ◽

10.3390/su10113841 ◽

2018 ◽

Vol 10 (11) ◽

pp. 3841 ◽

Cited By ~ 2

Author(s):

Songping Zhu ◽

Azhong Ye

Keyword(s):

Developing Countries ◽

Human Capital ◽

Capital Stock ◽

Direct Investment ◽

Technological Progress ◽

Green Technology ◽

Different Types ◽

The Impact

The reverse technology spillover effect of Outward Foreign Direct Investment (OFDI) has been widely discussed. In the context of pursuing green growth, a few scholars began to study the impact of OFDI on home country green technological progress or green total factor productivity. However, few of these papers have made a thorough analysis of how OFDI affects the home country’s green technological progress, and have not considered the impact of different types of OFDI on green technological progress. This paper extends the basic analysis framework of technological progress to green technological progress, and discusses for the first time the ways for China to invest in developed and developing countries to achieve green technological progress. Specifically, this paper combines the global Malmquist productivity concept with the directional distance function to construct the global Malmquist Luenberger (GML) index to describe green technological progress of China’s provinces, and uses panel data model from 2003 to 2016 to study the impact of China’s investment in different types of countries. The results show that: (1) China’s investment in developed countries can bring reverse green technology spillovers and promote China’s green technology progress. But this is also affected by China’s domestic human capital stock, the increase in human capital stock is conducive to the absorption of green technology. (2) OFDI flows to transition or developing countries have failed to bring about green technological progress, but domestic R&D capital stock can produce a control response. (3) Environmental regulation, import trade and domestic R&D capital stock can bring positive effects on green technology progress, while foreign direct investment, fiscal decentralization and economic growth hinder green technology progress. (4) There is regional heterogeneity in the impact of OFDI with different directions on green technological progress. Because of environmental regulation and economic development, the eastern region of China is easier to obtain reverse green technology progress than the central and western regions in the process of OFDI.