The OFDI`s Self-selection Effect And Learning Effect Of Chinese Listed Companies

In recent years,China`s outward foreign direct investment develops rapidly,foreign direct investment becomes another important way of participating in international operation besides international trade.Starting form Melitz(2003)`s enterprise heterogeneity model,the research perspective of international trade and investment becomes from the national and industrial level gradually to the enterprise micro level.The research of international trade and investment begins to pay attention to the effect of heterogeneity on companies` international operation.Based on the panel data of the Shanghai and Shenzhen stock exchange `s 2617 listed companies by industry in China from 2008 to 2013,this paper calculates the total factor productivity by Tornqvist index,and analyzes the relationship between the OFDI and the firm`s total factor productivity.Firstly,using random dominant K-S test,it compares the productivity difference between the OFDI companies and domestic companies,and test whether there is self-selection effect when the listed companies participate in OFDI. The results show that self-selection effect is not existed,even there is certain productivity paradox.The company`s scale?profit?human capital?the ownership structure are all the important factors that affect company`s OFDI decision.The industry difference has no effect on the self-selection effect.Secondly,the paper analyses the productivity change before and after the enterprises participate in OFDI.The industry difference affects OFDI`s learning effect :agriculture industry`s learning effect is positive,but not obviously;the manufacture industry`s learning effect is obviously negative;service industry`s learning effect is also negative,but not obviously.The learning effect is affected by the parent company`s human capital level,and the human capital`s influence on learning effect varies between different industries.According to the above conclusion,the paper puts forward government policy and corporate strategy advice.