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Can “Bring In” Induce “Go Global”——The Impact of FDI on OFDI of China
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TitleCan “Bring In” Induce “Go Global”——The Impact of FDI on OFDI of China  
AuthorLi Lei, Xian Guoming and Bao Qun  
OrganizationNankai University;; 
Key WordsFDI;OFDI; Spillover; Horizontal; Vertical 
AbstractIn the background of Chinese rapidly growing OFDI, this paper has constructed a new level of micro-data at the enterprise level from 2004 to 2013 to empirically investigate how much the FDI has influenced the OFDI. Our estimates, suggest that FDI have strong positive spillover effects on OFDI by domestic firms in china. Each 1% increase in horizontal, forward and backward FDI spillover, will result in OFDI by Chinese firm increasing 0.435%、0.225% and 0.359% respectively. The backward spillover effect of FDI is higher than the forward spillover effect. The result is still robust after using a variety of robustness tests, and the control of endogenous. Further, the spillover of FDI has a strong impact on the OFDI of Chinese firms toward middle and high-income countries. At the same time, the positive impact on the service-oriented, research-development and vertical production-oriented OFDI is more obvious. Finally, the paper confirms that FDI promotes the OFDI of local enterprises through two channels, one is through direct spillover effect, and the other is through the indirect effect that is by improving the productivity of enterprises and then promoting the OFDI. 
Serial NumberWP1285 
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