China's OFDI, R&D Spillovers and TFP Growth

By using time series dataset of 18 countries over 1984-2015, this paper investigate the impact of Chinese OFDI targeting developed or emerging economies on domestic productivity. The results show that: outward FDI, inward FDI both are contribute to TFP growth through the increase of R&D stocks in home country ultimately, although OFDI to developed countries has a negative impact at early time, and OFDI to emerging economies countries can positively affect technological progress in China much sooner. Also, it finds that the effect of R&D spillovers to TFP from inward FDI is greater than other channels.