Technology Spillover Effects of China's Investment in Malaysia Under the Belt and Road Initiative: Evidence from Listed Companies

Based on the micro-level investment data of Chinese A-share listed companies in Shanghai and Shen Zhen and the firm-level data of local Malaysian enterprises, this study adopts the difference-in-differences method to systematically test the technological spillover effect of China's investment in Malaysia, and analyzes the effect differences of different spillover channels, industry heterogeneity, and the moderating role of host country absorptive capacity. The results show that China's investment in Malaysia has generated a significant positive technological spillover on local enterprises in the host country, among which industrial linkage is the dominant channel. The technological spillover effect of high-tech industries is significantly stronger than that of traditional manufacturing, and both the human capital level and institutional quality of the host country have a positive moderating effect on the technological spillover effect. The study can provide empirical reference for China and Malaysia to optimize investment cooperation policies and promote the high-quality development of the Belt and Road Initiative.