Does Chinese OFDI really promote export?

China Finance and Economic Review

Table 2 The effect of OFDI on export trade: the full sample (wrong specifications)

Explanatory variable: China’s exports to the host country	Estimation method: OLS		Estimation method: PPML
Explanatory variable: China’s exports to the host country	(1)	(2)	(3)	(4)	(5)	(6)
Current OFDI flow	0.459^*** (11.33)	–	0.390^*** (11.51)	–	0.206^*** (3.73)	–
Current OFDI stock	–	0.487^*** (10.44)	–	0.432^*** (10.21)	–	0.075 (1.60)
Control variables in the gravity model	No	No	No	No	Yes	Yes
N	1354	1762	1354	1762	1331	1730
R ²	0.291	0.286	0.299	0.298	0.664	0.617

Note: (1) the control variables in the gravity model include GDP of the host country, GDP of China, geographic distance, the border dummy, the common language dummy, the FTA with China dummy, the OECD dummy, the WTO dummy, regional fixed effects, legal origin fixed effects, year fixed effects; (2) the value in the brackets is the t statistic; (3) *** is the significant level of 1 %; (4) the estimation of the standard errors of coefficients is clustered on the individual country level