Study On Home-country Economic Growth Effect Of The Outward Foreign Direct Investment

In the context of the adjustment period in the post-crisis era,from the perspective of economic growth alone,the BRICS economies' GDP growth rates has not returned to pre-crisis levels.On the other hand,the stock of BRICS countries' outward foreign direct investments,OFDI,keeps increasing and gets a greater proportion of the world as well.In the meantime,the process of globalization keeps advancing and antiglobalization tide is rising,filling the world economy with serious uncertainties.Nationalism and trade protectionism also bring more risks of recession in the recovering world economy.From this point of view the steady growth of China and other BRICS countries' economies is crucial to the stability of their own economy and the world economy,which makes it of great importance to restudy the home-country macroeconomic growth effects of BRICS's outward direct investment.This thesis mainly addresses two questions: First,how much home-country economic growth effect does the BRICS's outward FDI have? Second,what role does the process of outward foreign direct investment play in the home-country economic growth effect of the outward foreign direct investment?The main innovations of this thesis are as follows: firstly,skipping the intermediate factor,introducing two process variables of OFDI,pace and irregularity,to incorporate the speed and fluctuation of OFDI into the empirical model,and taking them as the point of penetration to study the difference of economic growth effect between BRICS countries and developed countries;secondly,flexibly applying the IV-type instrumental variables in the system GMM method to solve the endogenous problems existing in previous estimates.The main conclusions of this thesis are as follows: firstly,OFDI of developed countries has a rapidly significant positive effect on home-country economic growth;the impact of BRICS's OFDI is far less than that of developed countries;secondly,the absolute pace of OFDI in developed countries does not have a significant impact on the home-country economic growth;on the contrary,for BRICS countries,the quicker the absolute pace of OFDI is,the lower the home-country economic growth effect of BRICS countries' OFDI will be.Third,the irregular outward FDI of developed countries will reduce the promoting effect of outward FDI on their home countries' economic growth,while the irregular outward FDI of BRICS countries has no obvious effect on their home countries' economic growth.Fourth,the fast-paced and irregular OFDI in developed countries has a slight promotion impact on the OFDI's industrial upgrading effect while the BRICS countries have the opposite effect.At last,for BRICS countries and developed countries,the pace has little effect on the export effect of OFDI,but the irregularity will negatively affect the export effect of OFDI.Taping the potential of OFDI in promoting economic growth,adjusting the pace of OFDI and considering comprehensively the interaction between OFDI and its process,industrial upgrading and export,are of great significance for promoting stable economic growth.