OFDI,Intermediate Input Switching and the DVAR of Firm Export
Using the matched data of Chinese industrial enterprises database,Chinese customs database and Chinese firms'outward foreign direct investment(OFDI)information database,this paper uses the time-varying difference-in-difference model and propensity score matching method to investigate the effect and mechanism of OFDI on Chinese manufacturing firms'export domestic value added ratio(DVAR).The results show that OFDI significantly decreases current DVAR.The mechanism tests show that,OFDI decreases current DVAR through the intermediate input switching effect.The increase in the relative input of imported intermediates is the intermediary channel through which OFDI decreases DVAR;the effect of OFDI to countries with farther distance and higher import intermediate tariff on DVAR is more significant.Moreover,the intrinsic motivation of the intermediate input switching effect is to import intermediate inputs of high quality rather than low price;in the long run,OFDI significantly increases DVAR.
outward foreign direct investmentdomestic value added ratiointermediate input switchingdifference-in-difference
NETL
NSTL
万方数据
