Does foreign direct investment crowd in or crowd out private domestic investment in China? The effect of entry mode

2017 ◽  
Vol 61 ◽  
pp. 409-419 ◽  
Author(s):  
George S. Chen ◽  
Yao Yao ◽  
Julien Malizard
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Entry Mode ◽  
Domestic Investment ◽  
Crowd Out ◽  
Investment In China

scholarly journals Level of development, foreign direct investment and domestic investment in food manufacturing

F1000Research ◽  
2021 ◽  
Vol 10 ◽  
pp. 72
Author(s):  
Justice Gameli Djokoto
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Manufacturing Sector ◽  
Developed Countries ◽  
Domestic Investment ◽  
Food Manufacturing ◽  
Economies In Transition ◽  
Long Run ◽  
Crowd Out

Background: Whilst the literature on the complementarity and substitutability of foreign direct investment (FDI) on domestic investment (DI) is not uncommon, the facet of food manufacturing is non-existent. This paper fills this void by investigating the effect of FDI on DI in the food manufacturing sector for developing, economies in transition and developed countries. Methods: Using an unbalanced panel data of 49 countries from 1993 to 2016, from FAOSTAT, estimated by the system generalised method of moments (GMM), the Wald statistics for the short and long-run effects of FDI on DI were computed for the development groups. Results: Developed economies experienced a crowd-out effect of FDI on DI in the short run, whilst the others experienced no significant effect. In the case of the long run, food manufacturing sectors of all three development groups exhibited a crowd-out effect. The effect in the long run for all development groups together is a crowd-in. Analysing all country groups together could mask the results of the various country groups. Conclusions: A review of investment policies to priorities FDI entry mode that favour domestic investment is needed. Improvement of the investment regulatory and administrative efficiency among others are recommended.

Choice of market entry mode in China: the influence of firm-specific factors

2005 ◽  
Vol 30 (3) ◽  
pp. 51-70 ◽  
Author(s):  
Enrique Claver ◽  
Diego Quer
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Entry Mode ◽  
Traditional Theory ◽  
International Expansion ◽  
Resource Based View ◽  
Mode Of Entry ◽  
The World ◽  
Specific Factors ◽  
Investment In China

One of the issues attracting wider attention within research into corporate internationalisation is the choice of mode of entry into a foreign country. At present, China is one of the destinations which is acquiring greater importance in the international expansion of firms from various countries around the world. In this context, by combining the traditional theory on foreign direct investment with the resource-based view of the firm, this paper will analyse the influence of various tangible and intangible corporate factors on the degree of commitment towards direct investment in China.

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