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STUDY ON THE EXPORT EFFECT OF CHINA'S OUTWARD FOREIGN DIRECT INVESTMENT-AN EMPIRICAL RESEARCH BASED ON INVESTMENT INTENSITY AND INVESTMENT BREADTH
Shengjun Wang, Lei Wang

ABSTRACT. This paper is based on the perspective of the home country, and uses the two-dimensional analytical framework of investment intensity and investment breadth from the outward foreign direct investment theory for reference. Main conclusions are as follows: 1) There is an inverted-U shaped relationship between OFDI intensity and home country exports, which means there is an optimal investment scale for OFDI intensity: before achieving the optimal investment scale, OFDI intensity promotes home country exports; after achieving the optimal investment scale, OFDI intensity impedes home country exports. 2) OFDI breadth positively affects home country exports; the diversification of overseas investment areas is beneficial to the export of the home country. 3) OFDI breadth inversely moderates the inverted-U shaped relationship between OFDI intensity and home country exports. The research in this paper has deepened the understanding of the impact of OFDI on home country exports from different dimensions and provided guiding opinions for the overseas investment strategy of local governments in China   .

KEYWORDS: OFDI intensity, OFDI breadth, home country exports.

JEL classification: M2.