How the government promotes the simultaneous increase in the quantity and quality of outward foreign direct investment (OFDI) is a significant issue in promoting a higher level of opening up. The digital enabling effect generated by enterprises participating in government digital procurement projects such as the construction of digital infrastructure and digital government, may become a new advantage for enterprises to “go global”. In view of this, this paper employs text analysis and machine learning methods to screen and construct government digital procurement indicators from nearly 650,000 pieces of government procurement text information, to examine the enabling effect of government digital procurement on enterprise OFDI. The study finds that government digital procurement significantly promotes enterprise OFDI mainly through three pathways: facilitating digital transformation, alleviating financing constraints, and improving corporater eputation. Heterogeneity analysis shows that government digital procurement plays a more effective role in stimulating OFDI for private enterprises, enterprises conducting market-seeking or technology-seeking outward investment, enterprises in the strategic emerging industry, and enterprises in the central city. Based on the expansion analysis of the new development concept of dual circulation at home and abroad, it is found that the demand spillover generated by digital procurement in central cities can accelerate the smooth flow of data elements and digital resources in the “domestic circulation”, and promote the coordinated progress of peripheral cities and central cities in the “international circulation”. This paper not only provides new empirical evidence for the outward investment effect of government support policies, but also offers important references for the government to shape core advantages of Chinese enterprises to “go global” with policy support, and guide the construction of a new development paradigm of dual circulation reinforcing each other with demand.
/ Journals / Foreign Economics & Management
Foreign Economics & Management
LiZengquan, Editor-in-Chief
ZhengChunrong, Vice Executive Editor-in-Chief
YinHuifang HeXiaogang LiuJianguo, Vice Editor-in-Chief
Can Government Digital Procurement Promote the Outward Foreign Direct Investment of Enterprises?
Foreign Economics & Management Vol. 46, Issue 11, pp. 3 - 19 (2024) DOI:10.16538/j.cnki.fem.20240331.202
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Tan Weijie, Shen Minghao, Liu Yiqian. Can Government Digital Procurement Promote the Outward Foreign Direct Investment of Enterprises?[J]. Foreign Economics & Management, 2024, 46(11): 3-19.
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