Has outward foreign direct investment alleviated industrial overcapacity in China? An empirical test of the upstream and downstream industrial links

Wang, D; Wang, Y; Jiang, W; Shi, X

Has outward foreign direct investment alleviated industrial overcapacity in China? An empirical test of the upstream and downstream industrial links

Wang, D Wang, Y Jiang, W Shi, X

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Publisher:: ELSEVIER
Publication Type:: Journal Article
Citation:: Structural Change and Economic Dynamics, 2023, 67, pp. 250-263
Issue Date:: 2023-12-01

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Full metadata record

Field	Value	Language
dc.contributor.author	Wang, D
dc.contributor.author	Wang, Y
dc.contributor.author	Jiang, W
dc.contributor.author	Shi, X https://orcid.org/0000-0001-9653-7395
dc.date.accessioned	2024-03-18T08:59:41Z
dc.date.available	2024-03-18T08:59:41Z
dc.date.issued	2023-12-01
dc.identifier.citation	Structural Change and Economic Dynamics, 2023, 67, pp. 250-263
dc.identifier.issn	0954-349X
dc.identifier.issn	1873-6017
dc.identifier.uri	http://hdl.handle.net/10453/176867
dc.description.abstract	This article investigates whether and how outward foreign direct investment (OFDI) affects the industrial overcapacity in China. Using the panel data of eight overcapacity industries between 2005 and 2016, the study reveals the effectiveness of OFDI in alleviating China's industrial overcapacity. In particular, it examines the lagged and threshold effects of OFDI on industrial overcapacity. Empirical results show that: First, OFDI in overcapacity industries and their downstream industries exacerbates China's industrial overcapacity problem. Second, the impacts of OFDI on upstream overcapacity industries and their downstream industries have a lagged effect of four and two years, respectively. Third, the threshold value for the impact of OFDI on industrial overcapacity is $16.17109 billion. These findings provide valuable investment references for China and other developing countries seeking to alleviate industrial overcapacity through international capacity cooperation.
dc.language	English
dc.publisher	ELSEVIER
dc.relation.ispartof	Structural Change and Economic Dynamics
dc.relation.isbasedon	10.1016/j.strueco.2023.08.005
dc.rights	info:eu-repo/semantics/embargoedAccess
dc.subject	1402 Applied Economics
dc.subject.classification	Economics
dc.subject.classification	3502 Banking, finance and investment
dc.subject.classification	3801 Applied economics
dc.title	Has outward foreign direct investment alleviated industrial overcapacity in China? An empirical test of the upstream and downstream industrial links
dc.type	Journal Article
utslib.citation.volume	67
utslib.for	1402 Applied Economics
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/DVC (International)
pubs.organisational-group	University of Technology Sydney/DVC (International)/Australia-China Relations Institute
utslib.copyright.status	embargoed	*
utslib.copyright.embargo	2025-12-01T00:00:00+1000Z
dc.date.updated	2024-03-18T08:59:40Z
pubs.publication-status	Published
pubs.volume	67

Abstract:

This article investigates whether and how outward foreign direct investment (OFDI) affects the industrial overcapacity in China. Using the panel data of eight overcapacity industries between 2005 and 2016, the study reveals the effectiveness of OFDI in alleviating China's industrial overcapacity. In particular, it examines the lagged and threshold effects of OFDI on industrial overcapacity. Empirical results show that: First, OFDI in overcapacity industries and their downstream industries exacerbates China's industrial overcapacity problem. Second, the impacts of OFDI on upstream overcapacity industries and their downstream industries have a lagged effect of four and two years, respectively. Third, the threshold value for the impact of OFDI on industrial overcapacity is $16.17109 billion. These findings provide valuable investment references for China and other developing countries seeking to alleviate industrial overcapacity through international capacity cooperation.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/176867