The Impact of Cross-Cultural Communication on Firms OFDI: Evidence from China

Enterprise foreign direct investment (FDI) is closely linked to cultural ties between nations, and how to improve the efficiency of OFDI in the context of huge cultural differences has become an urgent problem for enterprises. Based on panel data from Chinese enterprises between 2013 and 2023, this study empirically investigates the impact mechanism of cross-cultural communication on OFDI. It is found that cultural communication significantly promotes corporate OFDI by enhancing host countrys cultural awareness and policy support, and this effect is more significant in cities with higher scientific and technological level and foreign investment concentration areas. Heterogeneity analyses show that the effect of cultural diffusion is stronger in SOEs and non-SOEs, revealing the importance of institutional advantages and governance structure. This study not only provides empirical evidence for the synergy between cultural communication and economic cooperation in the construction of the Belt and Road, but also makes suggestions for optimising enterprises overseas investment strategies.