Does Outward FDI enhance the development of ecological-innovation for domestic firms in emerging markets? A panel data analysis of Chinese manufacturing firms

Chao Li, Yi Wang*

*Corresponding author for this work

Research output: Working paperResearchpeer-review

Abstract

This paper analyzes the impact of OFDI by EMMNEs on domestic eco-innovation. We focus on how this relationship is contingent on firm characteristics, industrial conditions, and institutional environments. We test our hypotheses on a large sample of Chinese manufacturing firms during 1998-2013. The results indicate that EMMNEs' OFDI has a positive impact on domestic eco-innovation through reverse technology spillover effects. This relationship is stronger when EMMNEs are state-owned, when firm R&D and industrial pollution intensity are higher, when industrial technology distance is shorter, when home or host environmental regulation is more stringent, and finally when institutional distance is larger.
Original languageEnglish
Publication statusSubmitted - 2020

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