Abstract: Using the 2005-2011 micro-data and based on the propensity score matching method, this paper estimates the impact of China's outward FDI on firm's production and technical efficiency. The results show that by outward FDI Chinese companies significantly enhanced technical efficiency, and the positive role of outward investment even existed prior to cross-border investment. Taking the differences in investment location and corporate nature into account, we subdivided foreign-invested enterprises. The results show that enterprises which invested in developed countries obtained more efficiency improvements than enterprises which only invested in developing countries, while private foreign-invested enterprises have stronger ability to learn.
Keywords: China's Outward FDI, Enterprise Efficiency, Propensity Score Matching Estimates
source:Finance & Trade Economics ,No5,2014