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1 – 10 of 61
Article
Publication date: 25 July 2023

Tong Tong, Tarlok Singh, Bin Li and Lewis Liu

This paper aims to investigate the primary motivations for China’s outward foreign direct investment (ODI) decisions.

Abstract

Purpose

This paper aims to investigate the primary motivations for China’s outward foreign direct investment (ODI) decisions.

Design/methodology/approach

Using a panel data sample covering the period 2003–2012 and a comprehensive set of 176 host countries.

Findings

This study finds that market size, trade variables and natural resource variables are strongly related to the Chinese ODI stocks. This indicates that Chinese ODI decisions are driven by both market- and resource-seeking motives. The subperiod sample test results lend even stronger support to the market-seeking motive for ODI.

Originality/value

These results seem to emerge from the policy changes that were undertaken during the sample period. Consistent with subgroup tests, this study finds that the main purposes of China’s ODI in the top 100 countries are natural resource explorations and production line replacements.

Details

Pacific Accounting Review, vol. 35 no. 4
Type: Research Article
ISSN: 0114-0582

Keywords

Article
Publication date: 17 November 2014

Ilan Alon, Hua Wang, Jun Shen and Wenxian Zhang

The aim of this research is to examine the Chinese outward direct investment (ODI) from the perspectives of the Chinese state-owned enterprises (SOEs), focusing on their…

3083

Abstract

Purpose

The aim of this research is to examine the Chinese outward direct investment (ODI) from the perspectives of the Chinese state-owned enterprises (SOEs), focusing on their perceptions and important factors in the decision-making process. More specifically, it aims to understand where and why Chinese SOEs are investing. Increasingly integrated into the global economy, China has already become one of the largest investment economies in the world.

Design/methodology/approach

Conducted by the China Center at Rollins College in collaboration with the Kedge Business School and the China Executive Leadership Academy at Pudong, survey data are collected from 63 Chinese SOEs that reflect the structure of Chinese industry and the membership of the China Council for the Promotion of International trade.

Findings

Chinese SOEs have aligned their business expansion plans with the national priority, and played a dominant role in the current internationalization drive. They will likely increase their overseas investment substantially in both short and medium terms; their key business efforts include resource extraction, trading, services and manufacturing. Whereas Chinese ODIs tend to focus on the emerging economies in Asia, Africa and Latin America, more investments begin to take place in various developed countries, and many Chinese SOEs plan to increase their ODI in the USA, regarded as the most important market for overseas investment.

Originality/value

This research contributes to a better understanding on the growing ODIs by the Chinese SOEs since the launch of the “going global” policy.

Article
Publication date: 21 March 2022

Qingyan Jiang, Cuihong Yang, Jie Wu and Yan Xia

Known as the major capital providers in Belt and Road countries and the largest carbon emitter in the world, what role China's outward direct investment (ODI) plays in carbon…

Abstract

Purpose

Known as the major capital providers in Belt and Road countries and the largest carbon emitter in the world, what role China's outward direct investment (ODI) plays in carbon neutralization has become a matter of concern. This study aims to measure the impact of China's ODI on the carbon emissions of Belt and Road countries.

Design/methodology/approach

Based on an econometric model and an inter-regional input–output model, a new model measuring the carbon emission effects of ODI is developed.

Findings

The empirical results show that (1) in general, China's ODI generates an emission-reduction effect in Belt and Road countries; (2) The relationship between the emission-reduction effect and income level of host countries shows an approximate inverted U-shaped trend; and (3) China's ODI generates stronger emission-reduction effects on capital-intensive industries.

Originality/value

This study quantitatively measures the scale of carbon emission-increase and reduction effect, which is relatively lacking in previous studies. This study explores the heterogeneity from the perspectives of regions, countries and industries. The authors have compiled an inter-regional input–output table for the Belt and Road countries for 2014 to provide a broad basis for the study of related issues.

Details

International Journal of Emerging Markets, vol. 18 no. 11
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 8 January 2018

Tong Tong, Tarlok Singh and Bin Li

China’s outward foreign direct investment (ODI) has become a recent phenomenon in that China is now rated as the world’s third largest country for ODI. Previous studies have found…

Abstract

Purpose

China’s outward foreign direct investment (ODI) has become a recent phenomenon in that China is now rated as the world’s third largest country for ODI. Previous studies have found that China’s ODI is driven by the attractions of natural resources and overseas markets. Yet these studies have ignored the role of corporate governance at a national level, the paper aims to discuss these issues.

Design/methodology/approach

The Kaufmann et al. (1999) data set is used in our study and the data sample have covered the period from 2003 to 2012 for a comprehensive set of 171 host countries. Random effects model are applied in the paper and population average model is used to check the robustness of the results.

Findings

The authors find that the effects of macro-corporate governance are distinct in different sample periods, as well as in geographical and economic regions, when attracting China’s ODI. Indicators such as political stability, the absence of violence, regulatory effectiveness, regulatory quality, the rule of law and the control of corruption are found to be positively related to China’s ODI.

Originality/value

This is one of the first papers to investigate the relationship between macro-corporate governance indicators and China’s ODI. 171 countries are included in the data sample and sub-sample tests are also conducted.

Details

International Journal of Social Economics, vol. 45 no. 1
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 15 February 2019

Peter Buckley

The purpose of this paper is to examine the provenance, projection, performance and policy concerning Chinese outward foreign direct investment (COFDI) and speculate on the…

1128

Abstract

Purpose

The purpose of this paper is to examine the provenance, projection, performance and policy concerning Chinese outward foreign direct investment (COFDI) and speculate on the existence of “China’s international strategy”.

Design/methodology/approach

This study includes a comprehensive review of COFDI.

Findings

There is evidence of not only the successful coordination of COFDI, but also context, conflict and independent decision making (in Chinese firms) playing an essential role in the determination of the direction, control and outcomes of the outward FDI, respectively.

Research limitations/implications

There is a great scope for further research on COFDI, as the lack of data prevents definitive conclusions, particularly on the outcomes and performance of the investments.

Originality/value

The paper presents an original synoptic view of key elements in the globalisation of the world economy and in the projection of Chinese economic power.

Details

International Journal of Emerging Markets, vol. 14 no. 1
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 31 August 2010

Chung‐Ming Lau, Hang‐Yue Ngo and Daphne W. Yiu

The internationalization of Chinese firms has been gaining importance in recent years. Informed by Dunning's eclectic paradigm, this paper examines the factors leading to the…

2070

Abstract

Purpose

The internationalization of Chinese firms has been gaining importance in recent years. Informed by Dunning's eclectic paradigm, this paper examines the factors leading to the “going international” decisions of Chinese firms in the very early days of the “go global” call, before the central government offered substantial support.

Design/methodology/approach

It is suggested that two types of organizational factors are relevant to these decisions: the firm's management capability and core competencies. A survey of data of chief executives from over 3,000 firms in the year 2000 was analyzed.

Findings

Empirical results indicate that different resources endowments have different relationships with internationalization decisions. The intention of going international is affected by organizational competencies of R&D and manufacturing. Two capabilities (production and sales, and operation and finance) have significant impacts on outward direct investment, while manufacturing and marketing competencies have positive effects on exports, together with production capability. In addition, manufacturing competencies also have a negative effect on the acquisition and use of international capital.

Originality/value

By using firm‐level data collected in China, a better understanding of the nature of internationalization and the foreign direct investment characteristics of firms has been obtained. The empirical results show that the impacts of the organizational resources are different for different internationalization decisions, and the effects of core competencies of a firm vary across different paths of internationalization.

Details

Chinese Management Studies, vol. 4 no. 3
Type: Research Article
ISSN: 1750-614X

Keywords

Expert briefing
Publication date: 7 June 2022

However, large Chinese acquisitions of high-tech companies in the West are increasingly perceived as a security threat and face tightening restrictions, making Chinese firms…

Details

DOI: 10.1108/OXAN-DB270606

ISSN: 2633-304X

Keywords

Geographic
Topical
Article
Publication date: 6 November 2018

Zhiqun Zhu

The purpose of this paper is to analyze the rationale, strategies and significance of Chinese investment in the USA and its impact on US–China relations.

Abstract

Purpose

The purpose of this paper is to analyze the rationale, strategies and significance of Chinese investment in the USA and its impact on US–China relations.

Design/methodology/approach

Through empirical analysis, this preliminary study examines the rationale, strategies and impact of Chinese investment in the USA.

Findings

Chinese investment has promoted economic growth in both countries, but it faces several challenges including security concerns and cultural clashes.

Originality/value

This paper is one of the first, comprehensive studies of the topic.

Details

Asian Education and Development Studies, vol. 7 no. 4
Type: Research Article
ISSN: 2046-3162

Keywords

Book part
Publication date: 23 November 2017

Diego Quer, Enrique Claver and Laura Rienda

Outward foreign direct investment (FDI) from emerging economies, in particular from China and India, is on the rise. As a result, the international expansion of emerging-market…

Abstract

Outward foreign direct investment (FDI) from emerging economies, in particular from China and India, is on the rise. As a result, the international expansion of emerging-market multinational enterprises (MNEs) is attracting growing attention among scholars. However, existing research comparing the location patterns of Chinese and Indian MNEs is still scant. In order to fill this gap, we aim to analyze the impact of political risk and cultural distance on the location choice of Chinese and Indian MNEs. Drawing on an institutional approach, we propose several hypotheses regarding the influence of political risk and cultural distance on location decisions. We test our hypotheses using a sample of FDIs carried out by Chinese and Indian MNEs. Our findings suggest that the behavior of Chinese MNEs is less conventional than that of their Indian counterparts when facing institutional obstacles in host countries. Previous papers dealing with location decisions of China’s and India’s outward FDI did not specifically address the impact of political risk and cultural distance. This comparative study provides new empirical evidence on the influence of these traditional host country institutional factors.

Details

Distance in International Business: Concept, Cost and Value
Type: Book
ISBN: 978-1-78743-718-0

Keywords

Article
Publication date: 12 April 2011

Gaston Fornes and Alan Butt‐Philip

This paper aims to review and analyse the literature on the internationalisation of companies from China to Latin America (LA).

1843

Abstract

Purpose

This paper aims to review and analyse the literature on the internationalisation of companies from China to Latin America (LA).

Design/methodology/approach

The approach taken is that of a general review.

Findings

The analysis shows that: the vast majority of academic literature relates to the characteristics of Chinese MNCs and their expansion into developed countries; the available evidence tends to suggest that China's MNCs already possess some competitive capabilities that, although not yet completely developed and consolidated to compete against companies in developed countries, seem to have achieved a certain level that allows them to successfully compete in Latin American markets; the Chinese Government has directly participated by committing most of the investments itself and also by signing treaties and trade and investment agreements with more than 20 developing countries; and the current trade and investment figures hint that, in the medium term, Chinese MNCs may be involved in market‐seeking FDI in LA.

Originality/value

These findings seem to question the fit of existing theories with the reality of China's firms and the need for further studies in this area.

Details

International Journal of Emerging Markets, vol. 6 no. 2
Type: Research Article
ISSN: 1746-8809

Keywords

1 – 10 of 61