Xu Han, Zhou Jing
Volume 1, Issue 1
Published: September 05, 2025
This study examines whether, and through which channels, artificial intelligence (AI) adoption strengthens the resilience of outward foreign direct investment (OFDI) by Chinese listed firms over 2010–2023. Using a large firm–year panel, this study deploys complementary identification strategies—propensity score matching, difference-in-differences, and instrumental-variables (2SLS)—with extensive robustness checks (alternative AI proxies, placebo tests, and heterogeneous effects). The results show that AI adoption significantly increases OFDI resilience to macro-sectoral shocks, with stronger effects for financially constrained and non-state-owned firms, and during the investment and post-entry phases. Mechanism analyses indicate that AI (i) eases financing frictions by improving credit access, (ii) enhances cost efficiency in production and coordination, and (iii) reallocates resources toward higher-productivity uses. These findings suggest that, in emerging economies, AI diffusion and complementary policies (targeted credit, digital infrastructure, and life-cycle-aware support) can de-risk internationalization and raise the survivability of outward projects. The paper contributes firm-level causal evidence linking digital transformation to internationalization resilience in the Asia-Pacific context and offers actionable implications for managers and policymakers.
Artificial Intelligence; Outward FDI; Resilience; Financing Constraints; Resource Allocation; Emerging Markets; China; Asia-Pacific
Xu Han, School of International Trade, Anhui University of Finance and Economics, Bengbu, China.
Han, X., & Jing, Z. (2025). AI Adoption and the Resilience of Outward FDI: Firm-Level Evidence from China (2010–2023). Journal of Arts and Humanities, 1(1), 01-35.