Does the Host Country’s Foreign Direct Investment (FDI) Restrictiveness Inhibit the Export Sophistication of the Home Country? Evidence from China’s Manufacturing Data

Since the going-global approach of Chinese enterprises has accelerated, host country’s foreign direct investments (FDI) restrictiveness index dramatically influenced upgrading China’s trade structure. This study investigates relationship between FDI and export sophistication home country. Using two-way fixed-impact models firm-based microcosmic data, it verifies impacts reverse technology spillover (RTS) by intermediary model. The empirical outcomes illustrate that significantly inhibits In particular, overseas equity restrictions, selection endorsement requirements, additional operational limitations hold more substantial influence. However, limits on key experts have promoted Seemingly, countries’ inhibited in textile industry processing resource but same mechanical electronic industries. Likewise, nation through allocation. Manufacturing increased guiding allocation, were changed from previous quantitative competition to quality competition.