scholarly journals Harmony in Diversity: Can the One Belt One Road Initiative Promote China’s Outward Foreign Direct Investment?

2018 ◽  
Vol 10 (9) ◽  
pp. 3264 ◽  
Author(s):  
Lili Kang ◽  
Fei Peng ◽  
Yu Zhu ◽  
An Pan
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Outward Foreign Direct Investment ◽  
Host Countries ◽  
Cultural Convergence ◽  
One Belt One Road ◽  
Institutional Cooperation ◽  
The One ◽  
Matching Techniques ◽  
Econometric Technique

This paper investigates the effect of the One Belt One Road (OBOR) initiative on China’s outward foreign direct investment (OFDI) using a dataset of all host countries for the period of 2010–2015. The employed econometric technique combines a difference-in-differences estimator with matching techniques. The results show that China’s OFDI in OBOR countries is about 40% higher than in non-OBOR countries. After the initiative, the OFDI from China increases by 46.2% in OBOR countries. However, after controlling for the heterogeneity across OBOR and non-OBOR countries using the matching approach, the significance of the increasing effect caused by the OBOR initiative disappears. We also find the OBOR initiative diminishes the resource-seeking motivation and improves the market-seeking motivation of China’s OFDI. Our results cast doubts on the infrastructure-led and institution-based strategy of the OBOR initiative, but support the boosting effect of the OBOR initiative on institutional cooperation and cultural convergence. Thus, the OBOR initiative is a sustainable continuation and development of the long tradition of economic, institutional, and cultural convergence with the OBOR countries, rather than a temporary policy shock.

scholarly journals Trends and Determinants of Korean Outward FDI

2009 ◽  
Vol 27 (1) ◽  
pp. 126-154 ◽  
Author(s):  
Jungmin Kim ◽  
Dong Kee Rhee
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Firms ◽  
Multinational Firm ◽  
Location Decisions ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Host Countries ◽  
Distinctive Features

This paper examines the trends and determinants of Korean outward foreign direct investment and the extent to which location decision explanation needs to be nested within the general theory of the multinational firm. In the context of investment development path developed by Dunning and Narula, we examine the important factors for the location decisions of Korean outward foreign direct investment, considering host countries at very different stages of economic development. In line with this objective, we test empirically the determinants of Korean outward investment using macro economic factors of host countries. Thus, we identify several factors that impact on such trends and develop hypotheses that could explain the phenomenon generically. We test our hypotheses using official Korean outward FDI data collected from 1994 to 2005. The behavior of Korean multinational firms shows several distinctive features. As a result, we find that the dynamic effects of economic development have influenced on the changes of outward FDI characteristics.

scholarly journals The Influence of Outward Foreign Direct Investment on Enterprise Technological Innovation

2021 ◽  
Vol 2021 ◽  
pp. 1-13
Author(s):  
Chenggang Wang ◽  
Tiansen Liu ◽  
Jinliang Wang
Keyword(s):  
Foreign Direct Investment ◽  
Technological Innovation ◽  
Low Income ◽  
Direct Investment ◽  
Vital Role ◽  
Outward Foreign Direct Investment ◽  
Host Countries ◽  
Chinese Enterprises ◽  
Lag Effect ◽  
The Impact

As the scale of China’s outward foreign direct investment (OFDI) continues to expand, more and more scholars have begun to discuss the influence of OFDI on enterprise technological innovation. In order to be able to deeply explore the impact of enterprises’ OFDI activities on enterprise technological innovation, this paper combines relevant enterprise data from 2015 to 2017 and uses the new method to test the “technological innovation effect” produced by the OFDI of Chinese enterprises. Finally, this paper concluded that the development of OFDI activities of enterprises can promote the improvement of the level of technological innovation of enterprises, and this promotion has a lag effect. R&D-type OFDI activities play a vital role in promoting the ability of technological innovation of enterprises. Compared with low-income host countries, investment in high-income host countries has a greater effect on promoting the ability of technological innovation of enterprises.

scholarly journals How Do Cultural and Institutional Distance Affect China’s OFDI towards the OBOR Countries?

2017 ◽  
Vol 7 (1) ◽  
pp. 24-42 ◽  
Author(s):  
Lin Zhang ◽  
Zheqian Xu
Keyword(s):  
Direct Investment ◽  
Bilateral Trade ◽  
Cultural Distance ◽  
Institutional Distance ◽  
Outward Foreign Direct Investment ◽  
One Belt One Road ◽  
Belt And Road ◽  
The One ◽  
The Impact ◽  
The Belt And Road

Abstract In order to examine the impact of cultural and institutional distance on China’s OFDI towards the One Belt, One Road (OBOR) area, the paper selects 28 countries along The Belt and Road. The empirical results using panel data from 2006-2014 indicate that institutional distance is negatively correlated with China’s outward foreign direct investment (OFDI). At the same time, cultural distance interacts with bilateral trade, resulting in a “benefit of foreignness” effect.

The Political Economy of Chinese Outward Foreign Direct Investment in ‘One-Belt, One-Road (OBOR)’ Countries

2019 ◽  
pp. 360-384
Author(s):  
Ka Zeng
Keyword(s):  
Political Economy ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Preliminary Evidence ◽  
The Political ◽  
Outward Foreign Direct Investment ◽  
Chinese Investment ◽  
Political Risks ◽  
Role Of The State ◽  
One Belt One Road

This chapter engages in an analysis of the political economy of Chinese outward foreign direct investment (COFDI) in ‘One-belt, One-Road’ (OBOR) countries between 2005 and 2014. Research findings yield a couple of interesting results. First, there is strong evidence supporting the resource-seeking motivation behind COFDI to OBOR countries. Secondly, in contrast to previous findings, this study yields some preliminary evidence that COFDI is more likely to seek out countries with low political risks. Thirdly, the results suggest that in addition to going to countries with good political relations with Beijing, COFDI has also been more likely to flow to countries with shared diplomatic interests and agenda with the United States. Taken together, these findings point to the politically driven nature of Chinese investment in OBOR countries and the potentially central role of the state in guiding Chinese investment in the region.

China's Expanding Outward Foreign Direct Investment in Southeast Asia and its Impacts

2013 ◽  
Vol 05 (04) ◽  
pp. 87-98
Author(s):  
Hong ZHAO
Keyword(s):  
Foreign Direct Investment ◽  
Southeast Asia ◽  
Economic Integration ◽  
Direct Investment ◽  
Outward Foreign Direct Investment ◽  
Host Countries ◽  
Chinese Investment ◽  
Labour Division ◽  
The Impact

The surge in China's outward foreign direct investment (OFDI) has attracted considerable attention, largely projected as “neo-colonialism” in Africa and having potential effects on the host countries. In Southeast Asia, however, Chinese investment provides capital, employment, income and regional labour-division. This article analyses the nature and distribution of these investments, the main drivers of China's OFDI to Southeast Asia and the impact on economic integration in this region.

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