Academic Journal of Business & Management, 2025, 7(1); doi: 10.25236/AJBM.2025.070115.
Jiang Jingjing, Jiang Na, Yang Chunlin
School of Digital Economics and Management, Wuxi University, Wuxi, 214105, China
Outward foreign direct investment (OFDI) is an important way for Chinese firms to achieve high-quality development, and this process of action is significantly moderated by the institutional environment in which the firms are located. Empirical tests find that OFDI significantly increases firms' productivity and the number of patent applications, and promotes high-quality development compared to non-OFDI firms. This effect is enhanced by a favourable home region or host country institutional environment, and from the perspective of the linkage between home region and host country institutions, OFDI contributes more to the high-quality development of firms in the "low-high" institutional mix. This paper argues that Chinese firms achieve high-quality development through OFDI and that the institutional environment has a significant impact.
OFDI; productivity; innovation; home region institutional environment; host country institutional environment
Jiang Jingjing, Jiang Na, Yang Chunlin. Outward Foreign Direct Investment, Institutional Environment and High Quality Development of Chinese Enterprises . Academic Journal of Business & Management (2025), Vol. 7, Issue 1: 106-113. https://doi.org/10.25236/AJBM.2025.070115.
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