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Academic Journal of Business & Management, 2023, 5(3); doi: 10.25236/AJBM.2023.050308.

A study on the interaction effect of institutional quality and OFDI on Chinese export trade--case analysis based on RCEP member countries

Author(s)

Ruijuan Zhao, Wei Li

Corresponding Author:
​Ruijuan Zhao
Affiliation(s)

School of Economics and Management, Guangxi Normal University, Guilin, China

Abstract

OFDI is an important approach for China to realize economic integration with all countries in the world, and has a vital significance for China's "going-out" strategy. Based on the foreign trade panel data of China and RCEP member countries from 2009 to 2019, this paper explores the trade effect of OFDI and foreign exports, and studies the role and effect of host country institutional quality in the trade effect of OFDI. Further study is made on the influence of six governmental governance indicators of RCEP member state system quality on Chinese export trade. The results show that China's OFDI has complementary effects on the export trade of RCEP member countries, that is, OFDI has promoting effects on China's export trade in RCEP trade. The sound institutional quality of RCEP member countries strengthens the positive effect of OFDI on export trade; Six sub-indexes of institutional quality have promoted the export trade of our country significantly. Finally, this paper puts forward some suggestions to circumvent the system risks of RCEP member states from the perspective of regulatory authorities and enterprises. Conclusion can provide reference for the system development of our country.

Keywords

OFDI, System quality, Interaction effect, RCEP members, Indicators of government governance

Cite This Paper

Ruijuan Zhao, Wei Li. A study on the interaction effect of institutional quality and OFDI on Chinese export trade--case analysis based on RCEP member countries. Academic Journal of Business & Management (2023) Vol. 5, Issue 3: 48-57. https://doi.org/10.25236/AJBM.2023.050308.

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