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In the era of digital economy, data has gradually become a new production factor. Regulating the scope of data use and increasing the cost of data use is not conducive to business investment. This paper takes GDPR as an example to explore the impact of host country data regulation on Chinese digital economy enterprises’ OFDI. Firstly, a theoretical model is constructed to analyze the impact of GDPR on the OFDI choices and patterns of Chinese digital economy enterprises. Secondly, by matching the BVD Zephyr database and FDI Markets database from 2013 to 2022, the impact of GDPR implementation is assessed using the DID method. The research results show that the implementation of GDPR will inhibit the OFDI of Chinese digital economy enterprises, and the short-term negative impact is greater than the long-term negative impact.

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The Impact of Host Country Data Regulation on OFDI of Chinese Digital Economy Enterprises: A Case Study of GDPR

  • 会议论文

  • 发表日期：

    2025年

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  • Xingtong Liu,
  • Dongwen Tian,
  • Mingzhe Zhang

摘要

In the era of digital economy, data has gradually become a new production factor. Regulating the scope of data use and increasing the cost of data use is not conducive to business investment. This paper takes GDPR as an example to explore the impact of host country data regulation on Chinese digital economy enterprises’ OFDI. Firstly, a theoretical model is constructed to analyze the impact of GDPR on the OFDI choices and patterns of Chinese digital economy enterprises. Secondly, by matching the BVD Zephyr database and FDI Markets database from 2013 to 2022, the impact of GDPR implementation is assessed using the DID method. The research results show that the implementation of GDPR will inhibit the OFDI of Chinese digital economy enterprises, and the short-term negative impact is greater than the long-term negative impact.