A Study On The Impact Of Cultural Distance On The Reverse Technology Spillover Effect Of Chinese OFDI

Since the implementation of China’s "going out" strategy in 2011,the scale of China’s outbound investment(OFDI)has been increasing.Since "The Belt and Road" initiative was plaunched,China’s economic exchanges with other countries have become closer,and business cooperation has become more frequent.The "going out" strategy has been further implemented,with more Chinese enterprises going abroad and making overseas investments,and Chinese overseas investments have shown rapid growth.2022.With the development of world economic growth and economic integration,global FDI has rebounded strongly,and OFDI has become an essential way for enterprises to participate in transnational economic activities.According to some scholars’ research,OFDI has become vital for developing countries such as China to obtain technological progress.Furthermore,host country factors,bilateral economic development status,institutional distance,and cultural distance can significantly impact the technology spillover effect generated by international direct investment.Based on this,the study starts from a cultural distance,based on Hofstede’s cultural dimension theory and technology spillover theory.This study selects the major 20 countries of Chinese OFDI as the sample from the perspective of cultural distance,with the time interval of 2010-2019.Adopts an empirical approach to explore the relationship between cultural distance and OFDI reverse technology spillover.That is,the existence of cultural distance will significantly impact China’s What kind of impact does cultural distance have on the reverse technology spillover effect of OFDI in China? How? Then,the sample countries are divided into developed and developing countries according to the degree of economic development,and what are the similarities and differences in the impact of cultural distance on the reverse technology spillover effect of the two types of sample countries are considered?Based on the analysis of the empirical results,it is found that.First,the cultural distance between the home and host countries has a significant negative relationship on the reverse technology spillover of OFDI,i.e.,the greater the cultural distance between the two countries,the less the reverse technology spillover obtained through OFDI.Second,for China’s OFDI to developed countries,the cultural distance between the two countries is less significant than the total sample as well as the developing country sample in terms of the gain of reverse technology spillover of the OFDI group.Third,in terms of China’s OFDI to developing countries,the cultural distance between the two countries is more significant in acquiring reverse technology spillover from OFDI relative to developed countries.In this study,on the theoretical side,by combing the relevant literature,cultural distance is subdivided into different dimensions,enriching the research on cultural distance and OFDI reverse technology spillover to a certain extent.On the practical side,by analyzing the influence of cultural distance on OFDI reverse technology spillover,this study provides a specific basis for the state to formulate relevant policies on OFDI and to guide the OFDI activities of Chinese enterprises.Thus,we can make further exploration for the smooth development of China’s OFDI,the accelerated innovation of China’s technological progress,and the new mechanism of the open economy.