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Article
Publication date: 5 June 2017

Mengting Zhang, Changbiao Zhong and Feng Yu

Although prior research has highlighted the importance of foreign direct investment (FDI) on a country’s internationalization, it has largely focused on developed…

Abstract

Purpose

Although prior research has highlighted the importance of foreign direct investment (FDI) on a country’s internationalization, it has largely focused on developed countries. As a result, the FDI performance of a developing country, which differs fundamentally from that of developed countries in their environment, remains unclear. Under the newly development environment, the traditional FDI theories have been challenged by the increasing investments from emerging and transition economies. The theory system needs a fresh situation’s supplement urgently.

Design/methodology/approach

On the basis of a literature review, this paper constructed an empirical model to further study the moderating effects of context-specific factors on the influence of inbound foreign direct investment (IFDI) on outbound foreign direct investment (OFDI). China was chosen as the representation of a developing country, and its data of mutual investments with 125 countries from 2003 to 2014 were used to carry out hypothesis testing.

Findings

The analysis and results of this paper suggested: first, for China, the overall influence of IFDI on OFDI is positive. That is to say, IFDI’s positive spillover effect is greater than the negative competition effect. Second, innovational distance’s effect on FDI is complicated. It can either be positive or negative, which calls for further investigation. Third, economic distance negatively affects OFDI and negatively moderates IFDI’s effect on OFDI, especially the export. To some extent, the moderating effect that resulted from the competition effect will reduce overseas investment by extruding some of the local enterprises. Fourth, cultural distance’s effect is closely related to the spillover effect that will positively moderate IFDI’s influence on OFDI.

Originality/value

This paper enriched the international investment theoretical system by adding a mechanism of multiway international investment of a developing country. The research also has a guiding significance for developing countries’ governments in coordinating mutual international investments. Also, these results have important implications for how policymakers promote OFDI and put forward new theoretical avenues for conceptualizing the internationalization process.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 10 no. 2
Type: Research Article
ISSN: 1754-4408

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Article
Publication date: 3 July 2017

Yongtao Li and Changbiao Zhong

The purpose of this paper is to investigate the factors that influence consumers’ consumption behavior with regard to green aquatic products from a social cognitive theory…

Abstract

Purpose

The purpose of this paper is to investigate the factors that influence consumers’ consumption behavior with regard to green aquatic products from a social cognitive theory perspective.

Design/methodology/approach

A web survey was used to collect the data. The survey subjects were citizens of Ningbo City in Zhejiang Province. A total of 403 subjects were obtained through the sampling service, and 337 subjects were retained after strict examination. The data were used to construct a partial least squares structural equation model.

Findings

The cognition of green aquatic products significantly positively affects outcome expectancy, self-efficacy, perception of others’ behavior, and socio-structural conditions. Self-efficacy and outcome expectancy significantly positively influence consumption intention. Self-efficacy, perception of others’ behavior, and consumption intention significantly positively affect consumption behavior.

Practical implications

The concept, connotations and benefits of green aquatic products should be widely publicized through diversified channels to increase people’s knowledge of these products and to encourage people to distinguish them from regular aquatic products and to believe in their benefits. In addition, measures should be taken to guarantee that only genuine green aquatic products can enter the market because the false claims of some products have damaged consumers’ belief in these products.

Originality/value

To test the effect of the cognition of green aquatic products, the construct “the cognition of green aquatic products” was added to the model based on social cognitive theory. This paper contributes to the existing literature by further exploring how cognitive aspects affect consumption behavior with regard to green food.

Details

British Food Journal, vol. 119 no. 7
Type: Research Article
ISSN: 0007-070X

Keywords

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Article
Publication date: 9 September 2011

Kunting Chen and Changbiao Zhong

This paper aims to study the formation and amplification mechanism of the financial crisis and business cycle and also discuss the related optimal rules for the central…

Abstract

Purpose

This paper aims to study the formation and amplification mechanism of the financial crisis and business cycle and also discuss the related optimal rules for the central bank and government.

Design/methodology/approach

This study is developed basically on a simple financial business cycle model by embedding credit constrains into the DSGE model.

Findings

The model in this paper puts forward an explanation for the mechanism of cycles' formation. Using this it finds that: the financial lever in modern economy is the offender of the USA financial crisis, which created the cycles and amplified it into the crisis when the financial lever multiple was increased to much greater levels, and that the traditional policy rule is not good enough for a long running growth process.

Research limitations/implications

The findings in this study suggest that to keep the financial lever multiple under a safe level and to reform the policy rule to be good enough for a long run growth process is necessary.

Practical implications

According to the model's principle, the paper claims that: the development of the financial and credit markets during recent years has increased the volatility of the economic cycle – excessive credit abuse has become the root cause of the instability of the economy system; the proportion of the mortgage loan and similar financial products in the economy should be controlled strictly; it is necessary to recheck the traditional standpoint of the monetary policy. Rule policy by the Keynesian model exists as a short‐term problem, thus it is not sufficient to study the questions related to technological shocks.

Originality/value

The model in this paper explains well the mechanism of cycles and crisis' formation. The findings under the modeling economy give a safe level for financial lever multiples for the first time. The financial business cycle model being used in studying the Chinese economy is a pioneering and exploratory experiment.

Details

China Finance Review International, vol. 1 no. 4
Type: Research Article
ISSN: 2044-1398

Keywords

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Article
Publication date: 9 February 2015

Yan Chen, Rui-Rui Zhai, Chengqi Wang and Changbiao Zhong

The purpose of this paper is to examine how home institutions moderate the influence of internationalization, and the effect this has on the performance of stock-listed…

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Abstract

Purpose

The purpose of this paper is to examine how home institutions moderate the influence of internationalization, and the effect this has on the performance of stock-listed Chinese firms.

Design/methodology/approach

A sample of 118 stock-listed Chinese firms over the period 2006-2011 was considered, using the panel data method.

Findings

The results show that foreign ownership and region-specific marketization help firms reap the performance benefits of internationalization, while state ownership plays an insignificant role.

Research limitations/implications

The findings may not hold for unlisted firms, service firms or firms from other emerging economies.

Practical implications

The study suggests that Chinese managers should take advantage of home country institutions to improve the effects of internationalization on performance.

Originality/value

This research suggests that the analysis of the performance consequences of internationalization should go beyond the nexus between internationalization and performance, and also consider the home institutional factors that may facilitate or constrain the focal relationship.

Details

Management Decision, vol. 53 no. 1
Type: Research Article
ISSN: 0025-1747

Keywords

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