Digital Trade Development, Patient Capital and Corporate OFDI

Abstract

With the rapid development of communication technology and digital technology, the digital economy continues to develop, and digital trade is continuously becoming an important driving force for enterprises' outward foreign direct investment. The impact effect of digital trade on enterprises' OFDI is examined by comprehensively utilizing the data of work reports of Chinese municipal governments and A-share listed companies from 2008 to 2023. The results of the study show that digital trade has a significant promotion effect on enterprises' OFDI. Specifically, the impact of digital trade on OFDI is greater with the addition of corporate patient capital. Further tests from heterogeneity also reveal that the positive effect of digital trade in promoting OFDI by enterprises is more significant in the eastern region compared to enterprises in the central and western regions; at the same time, the facilitating effect of digital trade is more significant when the enterprise is a private enterprise. This study expands the analysis of the impact of digital trade on Chinese enterprises' OFDI from the perspective of digital trade, which provides theoretical support and path reference for Chinese enterprises' "high-level going out".