Skip to main content

Advertisement

SpringerLink
Log in

The productivity effects of two-way FDI in China’s logistics industry based on system GMM and GWR model

  • Original Research
  • Published:
Journal of Ambient Intelligence and Humanized Computing Aims and scope Submit manuscript

Abstract

Combined with the objective fact that China’s logistics industry inward foreign direct investment (IFDI) and outward foreign direct investment (OFDI) and total factor productivity (TFP) of space development is not balanced, this study used the system generalized method of moments (GMM) and geographically weighted regression (GWR) model respectively to explore the overall influence and spatial difference of two-way FDI on TFP of the logistics industry, and examined the role of absorptive capacity in the productivity effect of two-way FDI. The findings of this study show that: (1) the two-way FDI of the logistics industry promotes its TFP and the positive impact of logistics IFDI on TFP is stronger. (2) The influences of two-way FDI in the logistics industry on TFP at different regions fluctuate greatly. In general, the influence of two-way FDI in the logistics industry on TFP shows a trend of “east-central-western” gradient decline in the space. (3) The positive influence of two-way FDI in the logistics industry on TFP can be regulated by GDP and institutional quality significantly, and the capital level of human resources and R&D only enhance the technology spillover of the logistics industry IFDI channel significantly. Meanwhile, the eastern, central, and western regions showed varying degrees of difference.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3

Similar content being viewed by others

Availability of data and materials

The datasets used and/or analysed during the current study are available from the corresponding author on reasonable request.

Abbreviations

IFDI:

Inward Foreign Direct Investment

OFDI:

Outward Foreign Direct Investment

TFP:

Total factor productivity

GMM:

Generalized method of moments

GWR:

Geographically weighted regression

Two-way FDI:

Inward foreign direct investment and outward foreign direct investment

OLS:

Ordinary least squares

FE:

Fixed effects

RE:

Random effects

AIC:

Akaike information criterion

M:

Malmquist

DEA:

Data envelopment analysis

R&D:

Research and development

References

  • Abdullah M, Chowdhury M (2020) Foreign direct investment and total factor productivity: any Nexus? Margin J Appl Econ Res 14(2):164–190

  • Ahmed EM (2012) Are the FDI inflow spillover effects on Malaysia’s economic growth input driven? Econ Model 29(4):1498–1504

    Article  Google Scholar 

  • Aiken LS, West SG (1994) Multiple regression: testing and interpreting interactions. J Oper Res Soc 45(1):119–120

    Google Scholar 

  • Aitken BJ, Harrison AE (1999) Do domestic firms benefit from direct foreign investment? Evidence from Venezuela. Am Econ Rev 89(3):605–618

    Article  Google Scholar 

  • Ashraf A, Herzer D, Nunnenkamp P (2016) The effects of greenfield FDI and cross-border M&As on total factor productivity. World Econ 39(11):1728–1755

    Article  Google Scholar 

  • Bitzer J, Görg H (2009) Foreign direct investment, competition and industry performance. World Econ 32(2):221–233

    Article  Google Scholar 

  • Blundell R, Bond S (2007) GMM estimation with persistent panel data: an application to production functions. Economet Rev 19(3):321–340

    Article  MATH  Google Scholar 

  • Cai WY, Chen XS (2010) International knowledge spillovers and technology progress in China. J Quant Tech Econ 6:57–71

    Google Scholar 

  • Charnes A, Cooper W, Rhodes E (1978) Measuring the efficiency of decision making units. J Oper Res Soc 48(3):332–333

    Article  MATH  Google Scholar 

  • Che Y, Lu Y, Tao ZG, Wang P (2013) The impact of income on democracy revisited. J Comp Econ 41(1):159–169

    Article  Google Scholar 

  • Chen C (2018) Impact of China’s outward foreign direct investment on its regional economic growth. Chin World Econ 26(3):1–21

    Article  Google Scholar 

  • Chen H, Pan JD, Xiao W (2020) Chinese outward foreign direct investment and industrial upgrading from the perspective of differences among countries. Chin World Econ 28(3):1–28

    Article  Google Scholar 

  • Cowling K, Tomlinson PR (2011) The Japanese model in retrospective: industrial strategies, corporate Japan and the “hollowing out” of Japanese industry. Policy Stud 32(6):569–583

    Article  Google Scholar 

  • Cozza C, Rabellotti R, Sanfilippo M (2015) The impact of outward FDI on the performance of Chinese firms. China Econ Rev 36:42–57

    Article  Google Scholar 

  • Deng P (2007) Investing for strategic resources and its rationale: the case of outward FDI from Chinese companies. Bus Horiz 50(1):71–81

    Article  Google Scholar 

  • Dogan E, Wong KN (2020) Sources and channels of international knowledge spillovers in ASEAN-5: the role of institutional quality. J Int Dev 32(4):470–486

    Article  Google Scholar 

  • Dong F, Wang Y, Zheng L, Li JY, Xie SX (2020) Can industrial agglomeration promote pollution agglomeration? evidence from China. J Clean Prod 246(10):118960

    Article  Google Scholar 

  • Eapen A, Yeo J, Sasidharan S (2019) Finance constraints and technology spillovers from foreign to domestic firms. Econ Model 76:50–62

    Article  Google Scholar 

  • Fare R, Grosskopf S, Norris M, Zhang Z (1994) Productivity growth, technical progress, and efficiency change in industrialized countries. Am Econ Rev 84(1):66–83

    Google Scholar 

  • Fotheringham AS, Charlton M, Brunsdon C (1996) The geography of parameter space: an investigation of spatial non-stationarity. Int J Geogr Inf Syst 10(5):605–627

    Article  Google Scholar 

  • Fu X, Buckley PJ, Fu XM (2020) The growth impact of Chinese direct investment on host developing countries. Int Bus Rev 29(2):101658

    Article  Google Scholar 

  • Girma S (2005) Absorptive capacity and productivity spillovers from FDI: a threshold regression analysis. Oxf Bull Econ Stat 67(3):281–306

    Article  Google Scholar 

  • Gorodnichenko Y, Svejnar J, Terrell K (2014) When does FDI have positive spillovers? Evidence from 17 emerging market economies. J Comp Econ 42(4):954–969

    Article  Google Scholar 

  • Herzer D, Donaubauer J (2018) The long-run effect of foreign direct investment on total factor productivity in developing countries: a panel cointegration analysis. Empir Econ 54:309–342

    Article  Google Scholar 

  • Huang JB, Cai XC, Huang S, Tian S, Lei HY (2019) Technological factors and total factor productivity in China: evidence based on a panel threshold model. China Econ Rev 54:271–285

    Article  Google Scholar 

  • Huang Y, Zhang Y (2017) How does outward foreign direct investment enhance firm productivity? a heterogeneous empirical analysis from Chinese manufacturing. China Econ Rev 44:1–15

    Article  Google Scholar 

  • Huang Y, Zhu HM, Zhang ZQY (2020) The heterogeneous effect of driving factors on carbon emission intensity in the Chinese transport sector: evidence from dynamic panel quantile regression. Sci Total Environ 727:138578

    Article  Google Scholar 

  • Hyun HJ, Jang YG (2013) Comparative advantage, outward foreign direct investment and average industry productivity: theory and evidence. Korean Econ Rev 31(2):41–62

    Google Scholar 

  • Jiang MR, Luo SM, Zhou GY (2020) Financial development, OFDI spillovers and upgrading of industrial structure. Technol Forecast Soc Chang 155:119974

    Article  Google Scholar 

  • Jude C (2016) Technology spillovers from FDI evidence on the intensity of different spillover channels. World Econ 39(12):1947–1973

    Article  Google Scholar 

  • Jung J (2020) Institutional quality, FDI, and productivity: a theoretical analysis. Sustainability 12(17):7057

    Article  Google Scholar 

  • Kang SJ, Lee H (2011) Foreign direct investment and de-industrialisation. World Econ 34(2):313–329

    Article  Google Scholar 

  • Lan J, Kakinaka M, Huang X (2012) Foreign direct investment, human capital and environmental pollution in China. Environ Resour Econ 51(2):255–275

    Article  Google Scholar 

  • Lan SL, Tseng ML, Chen Y, Donald H (2020) Trends in sustainable logistics in major cities in China. Sci Total Environ 712:136381

    Article  Google Scholar 

  • Li J, Strange R, Ning L, Sutherland D (2016) Outward foreign direct investment and domestic innovation performance: evidence from China. Int Bus Rev 25(5):1010–1019

    Article  Google Scholar 

  • Lin JY, Wan G, Morgan PJ (2016) Factors affecting the outlook for medium-term to long-term growth in China. Chin World Econ 24(5):20–41

    Article  Google Scholar 

  • Liu C, Wang T, Guo Q (2019) Does environmental regulation repress the international r&d spillover effect? evidence from China. Sustainability 11(16):4353

    Article  Google Scholar 

  • Liu N, Fan F (2020) Threshold effect of international technology spillovers on China’s regional economic growth. Technol Anal Strateg Manag 32(8):923–935

    Article  Google Scholar 

  • Liu WH, Tsai PL, Tsay CL (2015) Domestic impacts of outward FDI in Taiwan: evidence from panel data of manufacturing firms. Int Rev Econ Financ 39:469–484

    Article  Google Scholar 

  • Liu WS, Agbola FW, Dzator JA (2016) The impact of FDI spillover effects on total factor productivity in the Chinese electronic industry: a panel data analysis. J Asia Pac Econ 21(2):217–234

    Article  Google Scholar 

  • Long RY, Ouyang HZ, Guo HY (2020) Super-slack-based measuring data envelopment analysis on the spatial–temporal patterns of logistics ecological efficiency using global malmquist index model. Environ Technol Innov 18:100770

    Article  Google Scholar 

  • Malmquist S (1953) Index numbers and indifference surfaces. Trabajos De Estada 4(2):209–242

    Article  MathSciNet  MATH  Google Scholar 

  • Orlic E, Hashi I, Hisarciklilar M (2018) Cross sectoral FDI spillovers and their impact on manufacturing productivity. Int Bus Rev 27(4):777–796

    Article  Google Scholar 

  • Papaioannou SK, Dimelis SP (2019) Does FDI increase productivity? the role of regulation in upstream industries. World Econ 42(4):1012–1031

    Article  Google Scholar 

  • Pietrucha J, Żelazny R, Kozłowska M, Sojka O (2018) Import and FDI as channels of international TFP spillovers. Equilib Q J Econ Econ Policy 13(1):55–72

    Google Scholar 

  • Qin HT, Huang QH, Zhang ZW, Lu Y, Li MC, Xu L, Chen ZJ (2019) Carbon dioxide emission driving factors analysis and policy implications of Chinese cities: combining geographically weighted regression with two-step cluster. Sci Total Environ 684:413–424

    Article  Google Scholar 

  • Rashidi K, Cullinane K (2019) Evaluating the sustainability of national logistics performance using data envelopment analysis. Transp Policy 74:35–46

    Article  Google Scholar 

  • Ren YJ (2020) Research on the green total factor productivity and its influencing factors based on system GMM model. J Ambient Intell Humaniz Comput 11(9):3497–3508

    Article  Google Scholar 

  • Romer PM (1986) Increasing returns and long-run growth. J Polit Econ 94(5):1002–1037

    Article  Google Scholar 

  • Sapkota P, Bastola U (2017) Foreign direct investment, income, and environmental pollution in developing countries: panel data analysis of Latin. Am Energy Econ 64:206–212

    Article  Google Scholar 

  • Seyoum M, Wu R, Yang L (2015) Technology spillovers from Chinese outward direct investment: the case of Ethiopia. China Econ Rev 33:35–49

    Article  Google Scholar 

  • Sultana N, Turkina E, Ghauri P (2020) Foreign direct investment, technological advancement, and absorptive capacity: a network analysis. Int Bus Rev 29(2):101668

    Article  Google Scholar 

  • Tsamadias C, Pegkas P, Mamatzakis E, Staikouras C (2019) Does r&d, human capital and FDI matter for TFP in OECD countries? Econ Innov New Technol 28(4):386–406

    Article  Google Scholar 

  • Tuan C, Ng L, Zhao B (2009) China’s post-economic reform growth: the role of FDI and productivity progress. J Asian Econ 20:280–293

    Article  Google Scholar 

  • Wang X, Qi Y (2020) The impact of institutional distance on innovation performance of OFDI enterprises: comparison of coastal and inland regions in China. J Coast Res 106:166–170

    Article  Google Scholar 

  • Wang XL, Fan G, Hu LP (2009) China’s provincial market index report (2018). Social sciences academic press, Beijing ((in Chinese))

    Google Scholar 

  • Wang YF, Xie L, Zhang Y, Wang CY, Yu K (2019) Does FDI promote or inhibit the high-quality development of agriculture in China? an agricultural GTFP perspective. Sustainability 11(17):4620

    Article  Google Scholar 

  • Wu DC (2020) Spatially and temporally varying relationships between ecological footprint and influencing factors in China’s provinces using geographically weighted regression (GWR). J Clean Prod 261:121089

    Article  Google Scholar 

  • Wu JZ, Ge ZM, Han SQ, Xing LW, Zhu MH, Zhang J, Liu JF (2020) Impacts of agricultural industrial agglomeration on China’s agricultural energy efficiency: a spatial econometrics analysis. J Clean Prod 260:121011

    Article  Google Scholar 

  • Wu YG, Song YG, Deng GY (2017) Institutional environment, OFDI, and TFP growth: evidence from China. Emerg Mark Financ Trade 53(9):2020–2038

    Article  Google Scholar 

  • Xia JW, Ortiz J, Wang HB (2016) Reverse technology spillover effects of outward FDI to P.R. China: a threshold regression analysis. Appl Econ Q 62(1):51–67

  • Yang C, Lan SL, Wang LH (2019) Research on coordinated development between metropolitan economy and logistics using big data and Haken model International. J Prod Res 57(4):1176–1189

    Article  Google Scholar 

  • Yang CH, Wu L, Lin HL (2010) Analysis of total-factor cultivated land efficiency in China’s agriculture. Agric Econ (AGRICECON) 56(5):231–242

    Google Scholar 

  • Zeng NY, Wang ZD, Zhang H (2016) Inferring nonlinear lateral flow immunoassay state-space models via an unscented Kalman filter. Sci China Inf Sci 59(11):112204

    Article  Google Scholar 

  • Zhang J, Wu GY, Zhang JP (2004) The Estimation of China’s provincial capital stock: 1952–2000. Econ Res J 10:35–44 ((in Chinese))

    Google Scholar 

  • Zhang Y (2019) Institutions, firm characteristics, and FDI spillovers. Emerg Mark Financ Trade 55(4–6):1109–1136

    Article  Google Scholar 

  • Zhang YL, Cheng ZY, He QS (2020) Time lag analysis of FDI spillover effect: evidence from the Belt and Road developing countries introducing China’s direct investment. Int J Emerg Mark 15(4):629–650

    Article  Google Scholar 

  • Zheng WJ, Xu XH, Wang HW (2020) Regional logistics efficiency and performance in China along the Belt and Road initiative: the analysis of integrated DEA and hierarchical regression with carbon constraint. J Clean Prod 276:123649

    Article  Google Scholar 

  • Zhou D, Li S, Tse DK (2002) The impact of FDI on the productivity of domestic firms: the case of China. Int Bus Rev 11(4):465–484

    Article  Google Scholar 

  • Zhou Y, Jiang J, Ye B, Hou BJ (2019) Green spillovers of outward foreign direct investment on home countries: evidence from China’s province-level data. J Clean Prod 215:829–844

    Article  Google Scholar 

Download references

Funding

This work was supported by the National Social Science Fund of China (18BGL018).

Author information

Authors and Affiliations

  1. School of Economics and Management, Fuzhou University, Fuzhou, 350108, China

    Minjie Li & Jian Wang

Authors
  1. Minjie Li
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Jian Wang
    View author publications

    You can also search for this author in PubMed Google Scholar

Contributions

ML: Conceptualization, investigation, writing—original draft, methodology, software, data curation, visualization. JW: writing—review & editing, supervision, funding acquisition.

Corresponding author

Correspondence to Jian Wang.

Ethics declarations

Conflict of interest

The authors declare that they have no competing interests.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Li, M., Wang, J. The productivity effects of two-way FDI in China’s logistics industry based on system GMM and GWR model. J Ambient Intell Human Comput 14, 581–595 (2023). https://doi.org/10.1007/s12652-021-03314-6

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s12652-021-03314-6

Keywords

Search

Navigation