Chinese MNEs' Outward FDI and Home Country Productivity: The Moderating Effect of Technology Gap

2016 ◽  
Vol 6 (4) ◽  
pp. 289-308 ◽  
Author(s):  
Mei Li ◽  
Dan Li ◽  
Marjorie Lyles ◽  
Shichang Liu
Keyword(s):  
Home Country ◽  
Moderating Effect ◽  
Outward Fdi ◽  
Technology Gap ◽  
Chinese Mnes

scholarly journals The Impact of Outward FDI on the Upgrading of China’s Manufacturing Industry Structure: A Literature Review

2017 ◽  
Vol 9 (6) ◽  
pp. 154 ◽  
Author(s):  
Shuyuan Jiang ◽  
Dan Cheng
Keyword(s):  
Direct Investment ◽  
Manufacturing Industry ◽  
Industrial Structure ◽  
Home Country ◽  
Industry Structure ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Pillar Industry ◽  
The Impact ◽  
The Relationship

Since China put forward the strategy of “going out”, outward foreign direct investment (FDI) began to grow rapidly, and the manufacturing industry, as the pillar industry of our country, is facing the dilemma of transformation. This paper will focus on this topic of the relationship between the outward FDI and upgrading of China’s manufacturing industry structure, and sort out and summarize the domestic and foreign literature. It is concluded that the existing literatures are consistent: the outward FDI can promote the upgrading of industrial structure of home country. In terms of China’s manufacturing industry, the outward FDI can promote the upgrading of China’s manufacturing industry, however, the impact have a kind of hysteresis quality, and may produce the phenomenon of “industry hollowing out”.

scholarly journals The Pitfalls of Using Foreign Direct Investment Data to Measure Chinese Multinational Enterprise Activity

2014 ◽  
Vol 221 ◽  
pp. 21-48 ◽  
Author(s):  
Dylan Sutherland ◽  
John Anderson
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Empirical Studies ◽  
Multinational Enterprise ◽  
Outward Fdi ◽  
Tax Havens ◽  
Chinese Mnes ◽  
Enterprise Activity ◽  
Business And Management

AbstractThe growth of Chinese multinational enterprises (MNE) has stimulated great interest in their outward foreign direct investment (FDI) strategies, particularly among academics in business and management studies. To date, however, serious methodological shortcomings plague empirical studies in these disciplines. Specifically, the vital issue of how Chinese MNEs use and route FDI via tax havens and offshore financial centres is not adequately dealt with. These practices have created large geographical, industrial composition and volume biases in Chinese outward FDI data. Using a sample of 100 Chinese MNEs, we illustrate how the use of tax havens and offshore financial centres has created these biases, and examine the implications for understanding Chinese MNE activity.

scholarly journals Outward FDI and Institutional Factors: Malaysian Experience

2016 ◽  
Vol 4 (3) ◽  
pp. 37
Author(s):  
Jen-Eem Chen ◽  
Lee Chin ◽  
Siong-Hook Law ◽  
W. N. W. Azman- Saini
Keyword(s):  
Home Country ◽  
Model Specification ◽  
International Expansion ◽  
Outward Fdi ◽  
Bounds Testing ◽  
Corporate Tax ◽  
Tax Rate ◽  
Distributed Lag ◽  
Internationalization Strategy ◽  
Using Data

This paper aims to investigate the role of home country institution in affecting outward FDI from Malaysia using data spans from 1980 to 2012.  The model specification is examined in autoregressive distributed lag (ARDL) bounds testing framework.  The empirical evidence reveals that GDP, exchange rate, openness to trade, and corporate tax rate are the key drivers of outward FDI from Malaysia.  This portrays that internationalization strategy of firms is not only relied on home macroeconomic environment, but also home institution.  More importantly, corporate tax rate, as one of the institution factors, is positively related to outward FDI which signifies that high tax rate would prompt local firms to engage in investment abroad as a sign of escape response. This reflects that international expansion appears to be exit strategy from home country instead of entry strategy into foreign markets.  The findings have some important implications on internationalization strategy of firms. 

How does liability of origin influence cross-border acquisition completion? Evidence from Chinese firms

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tingting Jiang ◽  
Buyun Yang ◽  
Bo Yang ◽  
Bo Wu ◽  
Guoguang Wan
Keyword(s):  
Multinational Enterprises ◽  
Home Country ◽  
Emerging Market ◽  
Organizational Legitimacy ◽  
Binary Logistic Regression Model ◽  
Firm Level ◽  
Content Type ◽  
Low Level ◽  
Cross Border ◽  
Chinese Mnes

Purpose The environment of international business (IB) and the capabilities of emerging market multinational enterprises (EMNEs) as well as their home countries have changed significantly, leading to some new features of liability of origin (LOR). This paper aims to extend the LOR literature by particularly focusing on the LOR of Chinese multinational enterprises (MNEs) and by taking into account the heterogeneity among industries and across individual MNEs. Design/methodology/approach Based on the stereotype content model and organizational legitimacy perspective, this study explores how LOR influences Chinese MNEs’ cross-border acquisition completions. Several hypotheses were tested by using a binary logistic regression model with panel data techniques based on data of 780 Chinese MNEs’ acquisition deals between 2008 and 2018. Findings The results of this study show that when the competence dimension of China’s LOR is perceived as high in the host country, Chinese MNEs are less likely to complete cross-border acquisitions. Moreover, deals are less likely to be completed when the warmth dimension of China’s LOR is perceived to be low. Global experience and the foreign-listed status of individual Chinese MNEs can alter the relationship between the LOR and deal completions. Originality/value This study advances and enriches the LOR research. It shows that a high level of competence in the home country has led to LOR for Chinese MNEs rather than the low level of competence proposed by existing LOR studies; and the LOR for Chinese MNEs is also determined by the perceived low level of warmth in the home country resulting from the geopolitical conflicts between two countries. In addition, the LOR suffered by EMNEs could vary based on certain industry- and firm-level characteristics. The findings of this study provide important practical implications for emerging economy governments and for firms intending to go abroad.

Sign in / Sign up

Export Citation Format

Share Document