Abstract: Overseas investment not only improves enterprise productivity, but also effectively promotes the expansion of enterprises in the domestic market. Based on data from domestic and overseas subsidiaries of Chinese listed companies from 2002 to 2021, this article empirically analyzes the promoting effect and mechanism of overseas investment experience on domestic expansion of enterprises. Research has found that for every 1% increase in overseas investment, the number of domestic cross-regional investments will increase by 0.14%. Mechanism analysis shows that expanding overseas business scale, increasing brand premium, and restructuring innovation ecology are important channels for promoting domestic expansion of enterprises. Further analysis shows that overseas investment experience has a productivity effect. External economic uncertainty will weaken the promotion effect of overseas investment experience, while internal management capabilities of enterprises have a certain buffering effect. This research not only provides micro-theoretical explanation and empirical support for the promotion of internal circulation through external circulation, but also provides policy insights for optimizing foreign investment strategies to stimulate domestic demand potential and promote high-quality economic development.
