Proceedings of the 4th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2022, December 9-11, 2022, Chongqing, China

Research Article

Research on the Impact of Outward Foreign Direct Investment on Domestic Regional Innovation —Empirical Analysis based on Spatial Durbin Model

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  • @INPROCEEDINGS{10.4108/eai.9-12-2022.2327564,
        author={Hengyuan  Zhao and Lina  Wang},
        title={Research on the Impact of Outward Foreign Direct Investment on Domestic Regional Innovation ---Empirical Analysis based on Spatial Durbin Model},
        proceedings={Proceedings of the 4th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2022, December 9-11, 2022, Chongqing, China},
        publisher={EAI},
        proceedings_a={MSIEID},
        year={2023},
        month={3},
        keywords={outward foreign direct investment; innovation; spatial spillover; spatial durbin model},
        doi={10.4108/eai.9-12-2022.2327564}
    }
    
  • Hengyuan Zhao
    Lina Wang
    Year: 2023
    Research on the Impact of Outward Foreign Direct Investment on Domestic Regional Innovation —Empirical Analysis based on Spatial Durbin Model
    MSIEID
    EAI
    DOI: 10.4108/eai.9-12-2022.2327564
Hengyuan Zhao1, Lina Wang2,*
  • 1: China Export & Credit Insurance Corporation
  • 2: North China University of Technology
*Contact email: wangln843@163.com

Abstract

Outward Foreign Direct Investment (OFDI) is one of the important channels for companies to coordinate R&D resources at home and abroad, and it will contribute to implementing the innovation driven strategy. Based on the provincial panel data from 2009 to 2016, this paper examines the impact of OFDI on domestic regional technological innovation with the Spatial Durbin Model. The result shows that, firstly, the regional innovation indicates positive spatial autocorrelation among provinces with the spatial distribution characteristics of "high-high agglomeration" and "low-low agglomeration". Secondly, OFDI has a significantly positive effect on domestic innovation, and could greatly promote the innovation of neighboring provinces through the spatial spillover effect. Thirdly, the above results are still valid with index substitute and endogenous test.