Study On The Influence Of Foreign Direct Investment On Business Performance

With China’s active participation in economic globalization,a large number of enterprises began to go abroad.In 2012,China’s OFDI reached a record high of $111.72 billion,becoming one of the world’s top three investment countries for the first time.In 2015,China’s OFDI reached $145.67 billion,surpassing total FDI for the first time.In 2020,amid the outbreak of COVID-19,China’s OFDI reached $153.71 billion,ranking first in the world for the first time.While the scale of OFDI continues to rise,we should also objectively see that Chinese OFDI enterprises are still faced with a series of problems,such as late start,less experience and higher risks.In particular,the outbreak of the Russia-Ukraine war in 2022 caused price fluctuations and supply constraints of resources and energy worldwide,and seriously affected global investment confidence.Under the background of drastic changes in the global political and economic pattern,the importance of resources and energy to national economic security becomes increasingly prominent.Therefore,the influence of foreign direct investment activities on the economic benefits of strategic mineral resources enterprises is of more profound practical significance.Taking strategic mineral resource enterprises as the research object,this thesis analyzes the influence of their foreign direct investment activities on economic benefits.The first chapter introduces the research background,significance,research content and innovation points,and sorts out relevant theories and literature on the impact of OFDI on enterprise benefits,which lays a foundation for the selection of research variables in the following thesis.Secondly,it describes the status quo of foreign direct investment of strategic mineral resources enterprises,and analyzes the non-financial indicators such as industry position and supply chain control.Then,through propensity score matching(PSM)and DID(Differences-in-Differences),this thesis empirically-analyzes the FDI data of listed Chinese strategic mineral enterprises from 2011 to 2020,and discusses the influence of FDI on enterprises’ economic benefits.Finally,based on the results of the above empirical analysis,suggestions on Chinese strategic mineral resource enterprises’ participation in FDI activities and investment transformation are given from the perspective of enterprises and government respectively.Through empirical research,this thesis draws the following conclusions: First,in general,foreign direct investment of strategic mineral enterprises has a negative correlation with their business performance,and transnational business activities fail to significantly improve their business performance.Second,enterprises’ OFDI has a lag effect on their economic benefits.In the first two years of OFDI,the economic benefits of OFDI enterprises are significantly negative,while in the third year,the economic benefits of OFDI enterprises will be relatively improved with the growth of investment years.Third,compared with non-state-owned enterprises,foreign direct investment of state-owned enterprises has a significant negative correlation with its economic benefits.