Yan Bing:Productivity, Financial Constraints and Chinese enterprises' OFDI

Date of publication:2016-9-20There have been0A reader to read the article

Productivity, Financial Constraints and Chinese enterprises' Outward Foreign Direct Investment

Abstract    Using firm-level industrial data and outward foreign direct investment data from 1999 to 2010 of Jiangsu provincethis paper examines the effect of productivity and financial constraints on Chinese enterprises' Outward Foreign Direct Investment decisions. We find that productivity and financial constraints have significant influence on investment decisions. Compared to the state-owned enterprises, the influence of financial constraints on private enterprises is stronger. The impact of financial constraints change with the level of productivity. The higher the productivity it is, the more significant the impact will be. Further study shows that the impact of productivity and financial constraints just influence whether the enterprise make foreign direct investment and the number of overseas investment projects. The impact on the scale of investment is not significant

 

This paper is published in World Economy Studies, No.9, 2016.