Research On Chinese Enterprises' Overseas Investment Entry Mode Based On Reverse Technology Spillovers

In recent years,Chinese enterprises have been developing rapidly in the international market.Although the global economy was relatively sluggish in 2016,the performance of Chinese companies in the foreign direct investment(OFDI)greenfield investment and cross-border mergers and acquisitions made other countries appreciate it.In particular,after the concept of the “One Belt and One Road” strategy was proposed in 2013,it provided new opportunities for Chinese companies to “going-global ” strategy on objective conditions.In order to obtain advanced technology and improve the overall level of competition in the company's technology,more and more companies are “going-global” to conduct technology-seeking foreign direct investment.As a result,the reverse technology spillover effect of foreign direct investment has attracted the attention of more and more scholars at home and abroad.The " Foreign direct investment Bulletin" shows that China's outward FDI flows ranked second in the world for the first time in 2015,surpassing Japan and second only to the United States.China's foreign direct investment in both 2015 and 2016 exceeded foreign investment and achieved net capital output.In order to grasp the initiative of international competition and obtain the reverse technology spillover effect,enterprises must choose the optimal investment entry mode “going-global” on the basis of understanding their own positioning and firm characteristics.The issue of the choice of overseas market entry mode is the most important issue faced by Chinese enterprises in the process of internationalization,and it is the focus of direct foreign investment.Therefore,as a developing country,it is difficult for us to maintain the development momentum of outward direct investment under the background of economic downturn.In order to obtain higher Reverse technology spillover effect,the enterprises how to select the optimal FDI market entry mode according to their own characteristics ? Research on this issue has important practical significance in the current context.Combining the “List of Foreign Investment Enterprises(Institutions)” and the “Foreign direct investment Bulletin”,this article will be conducted from 2008 to 2016.Among the top 100 non-financial companies with direct investment,64 listed companies were selected as the research subjects.First,the existence of reverse technology spillovers in OFDI was verified.Secondly,the OP method was used to estimate the total factor productivity of these companies in each year.Thirdly,the Logit model was used to empirically study the direct effects of firm size,capital intensity,firm ownership,and the interactive items of ownership and TFP on the direct investment model of the firm.By comparising the rusults of the full sample,the extracted subsamples and the empirical benchmark model,we can know that the results of the benchmark model are relatively robust.Then,the total factor productivity is further decomposed into research and development capabilities and management capabilities,and we study its relationship with the OFDI entry model.The research results show that China's foreign direct investment does have a reverse technology spillover effect.In order to obtain greater reverse technology spillover effects,smaller,higher capital-intensive companies are more likely to choose cross-border mergers and acquisitions in foreign direct investment entry mode.To our surprise,the influence of corporate ownership and disaggregated research and development capabilities on the choice of OFDI entry mode is not significant,but the interaction of enterprise productivity and ownership has a significant effect on OFDI entry mode: High-productivity non-state-owned enterprises are more willing to select the transnational merger and acquisition model to enter the international market.Finally,based on the characteristics of China's enterprises and the current development of foreign direct investment,related policy recommendations are proposed for the reference of enterprises and governments.This article studies from the perspective of the company's micro-characteristics.Taking the listed companies in recent years as the research object,it can provide empirical data for China's enterprises in the “going out” investment model selection.To a certain extent,it can supplement the current research literature on the selection of foreigen direct investment entry models.