The internationalisation of Chinese firms: Impact of FDI experience on export performance

Haoyuan Ding; Kees G. Koedijk; Chang Li; Tong Qi

doi:10.1111/twec.13175

The internationalisation of Chinese firms: Impact of FDI experience on export performance

Haoyuan Ding, Kees G. Koedijk, Chang Li^*, Tong Qi

^*Corresponding author for this work

Ethics, Governance and Society

Research output: Contribution to Journal › Article › Academic › peer-review

109 Downloads (Pure)

Abstract

This study investigates the relationship between firms’ export performance and prior investment experience in the corresponding country by using a novel dataset of Chinese firms. We find that a firm's export performance, in terms of value, quantity, unit price level and product varieties, is considerably better in destination countries where the firm has previously invested. The patterns are more pronounced when exporters are non-state-controlled or small-sized firms. Our analysis also shows that such country-specific outward foreign direct investment experience can facilitate firm exports by bridging country-pair physical and cultural distances and overcoming contractual barriers in destination countries. The data further imply that the positive effect partly stems from the purpose of local production.

Original language	English
Pages (from-to)	3609-3640
Number of pages	32
Journal	World Economy
Volume	44
Issue number	12
Early online date	26 Aug 2021
DOIs	https://doi.org/10.1111/twec.13175
Publication status	Published - Dec 2021

Bibliographical note

Special Issue: GLOBAL POLICY REVIEW.

Funding Information:
Haoyuan Ding acknowledges the financial support from the National Natural Science Foundation of China (no. 71703086; no. 72173082). Chang Li acknowledges the financial support from the National Natural Science Foundation of China (no. 71803048), and the financial support from Fundamental Research Funds for the Central Universities (2018ECNU‐ HLYT010). All remaining errors are our own.

Publisher Copyright:
© 2021 John Wiley & Sons Ltd

Copyright:
Copyright 2021 Elsevier B.V., All rights reserved.

Funding

Haoyuan Ding acknowledges the financial support from the National Natural Science Foundation of China (no. 71703086; no. 72173082). Chang Li acknowledges the financial support from the National Natural Science Foundation of China (no. 71803048), and the financial support from Fundamental Research Funds for the Central Universities (2018ECNU‐ HLYT010). All remaining errors are our own.

Keywords

country-specific experience
export
outward foreign direct investment

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1111/twec.13175

The internationalisation of Chinese firms Impact of FDI experience on export performanceFinal published version, 688 KBLicence: Article 25fa Dutch Copyright Act

Persistent URL (handle)

Persistent link

Cite this

@article{2aa9ebbcedcb4b0999fd4ff04c2a23ff,

title = "The internationalisation of Chinese firms: Impact of FDI experience on export performance",

abstract = "This study investigates the relationship between firms{\textquoteright} export performance and prior investment experience in the corresponding country by using a novel dataset of Chinese firms. We find that a firm's export performance, in terms of value, quantity, unit price level and product varieties, is considerably better in destination countries where the firm has previously invested. The patterns are more pronounced when exporters are non-state-controlled or small-sized firms. Our analysis also shows that such country-specific outward foreign direct investment experience can facilitate firm exports by bridging country-pair physical and cultural distances and overcoming contractual barriers in destination countries. The data further imply that the positive effect partly stems from the purpose of local production.",

keywords = "country-specific experience, export, outward foreign direct investment",

author = "Haoyuan Ding and Koedijk, {Kees G.} and Chang Li and Tong Qi",

note = "Special Issue: GLOBAL POLICY REVIEW. Funding Information: Haoyuan Ding acknowledges the financial support from the National Natural Science Foundation of China (no. 71703086; no. 72173082). Chang Li acknowledges the financial support from the National Natural Science Foundation of China (no. 71803048), and the financial support from Fundamental Research Funds for the Central Universities (2018ECNU‐ HLYT010). All remaining errors are our own. Publisher Copyright: {\textcopyright} 2021 John Wiley & Sons Ltd Copyright: Copyright 2021 Elsevier B.V., All rights reserved.",

year = "2021",

month = dec,

doi = "10.1111/twec.13175",

language = "English",

volume = "44",

pages = "3609--3640",

journal = "World Economy",

issn = "0378-5920",

publisher = "Wiley-Blackwell Publishing Ltd",

number = "12",

}

TY - JOUR

T1 - The internationalisation of Chinese firms: Impact of FDI experience on export performance

AU - Ding, Haoyuan

AU - Koedijk, Kees G.

AU - Li, Chang

AU - Qi, Tong

N1 - Special Issue: GLOBAL POLICY REVIEW. Funding Information: Haoyuan Ding acknowledges the financial support from the National Natural Science Foundation of China (no. 71703086; no. 72173082). Chang Li acknowledges the financial support from the National Natural Science Foundation of China (no. 71803048), and the financial support from Fundamental Research Funds for the Central Universities (2018ECNU‐ HLYT010). All remaining errors are our own. Publisher Copyright: © 2021 John Wiley & Sons Ltd Copyright: Copyright 2021 Elsevier B.V., All rights reserved.

PY - 2021/12

Y1 - 2021/12

N2 - This study investigates the relationship between firms’ export performance and prior investment experience in the corresponding country by using a novel dataset of Chinese firms. We find that a firm's export performance, in terms of value, quantity, unit price level and product varieties, is considerably better in destination countries where the firm has previously invested. The patterns are more pronounced when exporters are non-state-controlled or small-sized firms. Our analysis also shows that such country-specific outward foreign direct investment experience can facilitate firm exports by bridging country-pair physical and cultural distances and overcoming contractual barriers in destination countries. The data further imply that the positive effect partly stems from the purpose of local production.

AB - This study investigates the relationship between firms’ export performance and prior investment experience in the corresponding country by using a novel dataset of Chinese firms. We find that a firm's export performance, in terms of value, quantity, unit price level and product varieties, is considerably better in destination countries where the firm has previously invested. The patterns are more pronounced when exporters are non-state-controlled or small-sized firms. Our analysis also shows that such country-specific outward foreign direct investment experience can facilitate firm exports by bridging country-pair physical and cultural distances and overcoming contractual barriers in destination countries. The data further imply that the positive effect partly stems from the purpose of local production.

KW - country-specific experience

KW - export

KW - outward foreign direct investment

UR - http://www.scopus.com/inward/record.url?scp=85113374681&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85113374681&partnerID=8YFLogxK

U2 - 10.1111/twec.13175

DO - 10.1111/twec.13175

M3 - Article

AN - SCOPUS:85113374681

SN - 0378-5920

VL - 44

SP - 3609

EP - 3640

JO - World Economy

JF - World Economy

IS - 12

ER -

The internationalisation of Chinese firms: Impact of FDI experience on export performance

Abstract

Bibliographical note

Funding

Keywords

UN SDGs

Access to Document

Persistent URL (handle)

Other files and links

Fingerprint

Cite this