International investment protection and operational benefits of China's outward foreign direct investment enterprises:empirical tests based on micro-level data
With the increase of comprehensive competitiveness,China's enterprises have achieved rapid growth and good performance in outward foreign direct investment;however,they have also been hindered by international investment protection to some extent.In this context,this paper examines the impact of international investment protection on operational benefits of China's outward foreign direct investment enterprises at the micro level by matching the List of Overseas Investment Enterprises(Institutions)published by the Ministry of Commerce,Guotaian database and OECD's foreign investment restriction index database.It measures the operational benefits of enterprises by means of operating profit margin and net profit margin of total assets.It makes an empirical study and finds that international investment protection will reduce operational benefits of China's outward foreign direct investment enterprises and the results are robust;however,there is heterogeneity in host country and enterprise ownership.Furthermore,the transmission mechanism shows that the operational benefits of China's outward foreign direct investment enterprises are reduced by the rise in operational cost rate and the decline in growth rate of total assets.The study reveals that international investment protection will have a negative impact on China's outward foreign direct investment enterprises at the micro level,so business management departments and enterprises should effectively prevent and respond to international investment protection.
international investment protectionoutward foreign direct investmentoperational benefitsmicro-level data
NETL
NSTL
万方数据
