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Does Chinese companies' OFDI enhance their own green technology innovation?

Author

Listed:
  • Zhang, Weiwei
  • Zhang, Shijin
  • Chen, Fu
  • Wang, Yuan
  • Zhang, Yichi

Abstract

This paper discusses the impacts of Chinese corporations’ outward foreign direct investment (OFDI) on their own green technology innovation. Based on the OFDI sample data of Chinese listed multinational corporations from 2010 to 2021, this study draws several key conclusions. Firstly, it is found that the green technology innovation of these corporations is positively influenced by their OFDI. Secondly, this impact is more pronounced on substantive green technology innovation than on strategic green technology innovation. In addition, the risk preference of senior executives plays a moderating role between Chinese corporations’ OFDI and their own green technology innovation. The findings of this study enrich the literature regarding OFDI and green technology innovation and provide a universal reference for increasing corporations’ foreign investment and promoting green technology innovation in emerging countries.

Suggested Citation

  • Zhang, Weiwei & Zhang, Shijin & Chen, Fu & Wang, Yuan & Zhang, Yichi, 2023. "Does Chinese companies' OFDI enhance their own green technology innovation?," Finance Research Letters, Elsevier, vol. 56(C).
    • Handle: RePEc:eee:finlet:v:56:y:2023:i:c:s1544612323004853
    DOI: 10.1016/j.frl.2023.104113
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    References listed on IDEAS

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    1. Bing Han & Zhile Yang, 2021. "Does China’s OFDI Successfully Promote Environmental Technology Innovation?," Complexity, Hindawi, vol. 2021, pages 1-13, March.
    2. Chiou, Tzu-Yun & Chan, Hing Kai & Lettice, Fiona & Chung, Sai Ho, 2011. "The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 822-836.
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    4. Hao, Yu & Guo, Yunxia & Guo, Yitong & Wu, Haitao & Ren, Siyu, 2020. "Does outward foreign direct investment (OFDI) affect the home country’s environmental quality? The case of China," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 109-119.
    5. Songping Zhu & Azhong Ye, 2018. "Does the Impact of China’s Outward Foreign Direct Investment on Reverse Green Technology Process Differ across Countries?," Sustainability, MDPI, vol. 10(11), pages 1-19, October.
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    Cited by:

    1. Nie, Changfei & Ye, Susu & Feng, Yuan, 2024. "Place-based policy and urban green technology innovation: Evidence from the revitalization of old revolutionary base areas in China," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1257-1272.
    2. Zhou, Yacheng & Huo, Weidong & Bo, Lan & Chen, Xiaoxian, 2023. "Impact and mechanism analysis of ESG ratings on the efficiency of green technology innovation," Finance Research Letters, Elsevier, vol. 58(PD).
    3. Li, Huidi & Liu, Jiali & Wang, Huiru, 2024. "Impact of green technology innovation on the quality of regional economic development," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 463-476.
    4. Khurram, Muhammad Usman & Abbassi, Wajih & Chen, Yifan & Chen, Lifeng, 2024. "Outward foreign investment performance, digital transformation, and ESG performance: Evidence from China," Global Finance Journal, Elsevier, vol. 60(C).
    5. Cai, Xiang & Zhao, Xiaohui & Jiang, Cuiting & Zhang, Liguo, 2024. "China's foreign direct investments: Do they promote domestic green technology?," Journal of Policy Modeling, Elsevier, vol. 46(1), pages 60-74.
    6. Shao, Yanmin & Li, Junlong & Zhang, Xueli, 2024. "Outward foreign direct investment and green technology innovation: A company and host country perspective," Technological Forecasting and Social Change, Elsevier, vol. 203(C).

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