Outward Foreign Direct Investment And Reverse Technology Spillover: Evidence From Chinese Firms

Outward foreign direct investment (OFDI) from emerging economies theoretically regarded as a means to acquire overseas knowledge and overcome competitive disadvantages, potentially benefiting parent firms through reverse technology spillover. This thesis empirically examines Chinese OFDI, establishing a positive link with innovation, highlighting its potential as a catalyst for technological advancements. Further, it uncovers the influence of project-specific characteristics challenging the assumptions that location choice decision is solely exogenous to the firm. Additionally, this research explores how host-home differences hinder reverse technology spillover and emphasises the role of experience in overcoming such challenges. This thesis contributes to the existing literature by exploring multiple aspects of the OFDI-reverse technology spillover relationship.