• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Fiona Chu
    • Abstracting/ Indexing:  CNKIGoogle ScholarCrossref
    • E-mail: joebm.editor@gmail.com
JOEBM 2022 Vol.10(1): 24-28 ISSN: 2301-3567
DOI: 10.18178/joebm.2022.10.1.668

The Economic Impact of China's Outward Foreign Direct Investment on the Belt and Road Initiative Countries — Based on the Mediating Effect of Employment

Chengjiao Li and Biyun Yang

Abstract—It is widely believed that strengthening globalization is very important and the Belt and Road Initiative (BRI) proposed by China is one of the ways to realize it. The outward foreign direct investment (OFDI) from China is one core area in BRI. This paper selects panel data of 79 countries along BRI from 2009 to 2018 to analyze the impacts of China's OFDI on the GDP of these countries, and to analyze the mediating effect of employment. Considering that the economic conditions of different countries vary greatly, this paper divides 79 countries into three subsamples according to their economic conditions, and then analyze them respectively. The results show that: (1) China's OFDI has a statistically significant positive impact on the GDP of the selected countries, and the employment also has a significant positive mediating effect. (2) In terms of the subsamples, the least developed countries statistically significant benefited from China's OFDI, and employment also played a statistically significant positive intermediary role. However, GDP of developed countries is negative affected but not statistically significant, so employment did not play an intermediary role; GDP of the rest of the countries is positive but not statistically significant affected, so employment also didn’t play an intermediary role.

Index Terms—The belt and road initiative (BRI), outward foreign direct investment (OFDI), economy, employment.

Chengjiao Li is with Business School, University of Leeds, Leeds, LS3 1DP, UK (e-mail: chengjiaoli88@126.com). Biyun Yang is with School of Finance, Guangdong University of Foreign Studies, Xiaoguwei, Panyu District, Guangzhou, 510006, China (e-mail: biyunyang@163.com).

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Cite:Chengjiao Li and Biyun Yang, "The Economic Impact of China's Outward Foreign Direct Investment on the Belt and Road Initiative Countries — Based on the Mediating Effect of Employment," Journal of Economics, Business and Management vol. 10, no. 1, pp. 24-28, 2022.

Copyright © 2022 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

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