OFDI operation modes and reverse technology spillovers: Implications for the quality of economic growth

This study delves into the nuanced relationship between China's OFDI and the enhancement of economic growth quality, with a focus on the reverse technology spillover effect. Our findings reveal that OFDI contributes significantly to the efficiency and sustainability of economic growth. Notably, we observe a time-lag effect in the positive impact on growth quality, indicating a delayed manifestation of reverse technology spillovers. Further, heterogeneity analysis suggests that OFDI in high-economic-level host countries, by firms with fewer branches and those in trade sales, enhances the quality, efficiency, and sustainability of China's economic growth, albeit with limited stability impact. Additionally, we uncover a mediating effect wherein OFDI-induced scale expansion elevates domestic human capital levels and R&D intensity, narrows the technology gap, and substantially uplifts China's economic growth quality. This research not only sheds light on the strategic value of China's OFDI in global economic dynamics but also offers actionable insights for policymakers and businesses to harness OFDI for sustainable and quality-driven economic advancement.