The Impact On Firm Performance Of OFDI

Since the “Going Out” strategy was proposed, outward direct foreign investment has been the hot research focus in international trade field. A lot of scholars have studied the influence factor, investment goals and model of OFDI. However, fewer scholars have paid more attention on the link between OFDI and firm performance. In order to solve the problem if OFDI substitutes the firm performance, this paper uses firm-level data sample to estimate the impact of OFDI on firm performance.After examination, we find some meaningful conclusions. Firstly, OFDI could improve firm performance if taking into account region and industry factors. Secondly, if investing developing countries, the positive effect on performance is more obvious. Thirdly, the OFDI of private enterprises and joint ventures have more significantly effect on their performance. Fourth, the impact of outward direct foreign investment on firm’s performance will not be affected by the variable selection. Fifth, if adding all control variables and fixed effect, outward direct foreign investment will promote enterprise business performance and the promoting effect increases gradually with time.