Confucius Institutes and FDI flows from China to Africa

Akhtaruzzaman, Muhammad; Berg, Nathan; Lien, Donald

doi:10.1016/j.chieco.2017.02.004

Cited by 35 publications

(21 citation statements)

References 33 publications

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“…In addition, Kandogan and Hiller () show that membership in intergovernmental organisations helps build trust and increases the likelihood of signing trade agreements. Among existing studies, the closest to ours are Akhtaruzzaman, Berg, and Lien (), Lien and Co (), Lien, Oh, and Selmier (), Lien, Ghosh, and Yamarik (), Lien, Yao, and Zhang () for the case of Confucius Institutes, and Lien and Lo () for the Goethe Institute. Akhtaruzzaman et al () report a significantly positive effect of Confucius Institutes on FDI outflows from China to Africa, and Lien et al () report a positive effect on Chinese exports and FDI outflows to the rest of the world.…”

Section: Introductionmentioning

confidence: 85%

“…Among existing studies, the closest to ours are Akhtaruzzaman, Berg, and Lien (), Lien and Co (), Lien, Oh, and Selmier (), Lien, Ghosh, and Yamarik (), Lien, Yao, and Zhang () for the case of Confucius Institutes, and Lien and Lo () for the Goethe Institute. Akhtaruzzaman et al () report a significantly positive effect of Confucius Institutes on FDI outflows from China to Africa, and Lien et al () report a positive effect on Chinese exports and FDI outflows to the rest of the world. Lien and Co () reports a similar effect for US exports to China, and Lien et al () find a positive effect on demand for international travel to China.…”

Section: Introductionmentioning

confidence: 85%

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Effects of cultural institutes on bilateral trade and FDI flows: Cultural diplomacy or economic altruism?

Demir

2019

World Economy

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The number of cultural institutes from major developed and developing countries increased significantly in the last twenty years. In this paper, using cross‐sectional and panel data analysis on bilateral trade in goods and services, and FDI inflows and outflows, we examine the economic effects of 1,266 cultural institutes from China, France, Germany, Japan, Portugal, Spain, Turkey and UK for the period of 1990–2015. The empirical results suggest that cultural institutes have significantly positive trade and FDI enhancing effects, which are persistent over time. However, these effects are most robust only with goods exports and FDI outflows. Furthermore, the economic effects of cultural institutes are not homogenous across destinations and are the strongest for developed rather than developing host countries. There is also significant heterogeneity among cultural institutes with significant differences in their economic effects on different types of bilateral trade and FDI flows.

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Section: Introductionmentioning

confidence: 85%

Section: Introductionmentioning

confidence: 85%

Effects of cultural institutes on bilateral trade and FDI flows: Cultural diplomacy or economic altruism?

Demir

2019

World Economy

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“…In particular, the location of Confucius Institutes seems to be based to some degree on political factors than just purely economic factors. Akhtaruzzaman, Berg, and Lien () provided empirical evidence of an independent positive effect of Confucius Institutes on FDI outflows from China to African countries after controlling for foreign aid from China and natural resources in a particular African country. The study concluded that Confucius Institutes are an important instrument for increasing China's soft power and that the institute location decision goes beyond the motive of seeking natural resources.…”

Section: Cultural Institutesmentioning

confidence: 99%

Asymmetric effects of cultural institutes on trade and foreign direct investment

Lien

Bojanic

2019

World Economy

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The purpose of a cultural institute is to improve international relations with other countries by promoting language familiarity and cultural awareness. In addition, cultural institutes can provide additional business opportunities that lead to positive economic side effects such as increases in trade and foreign direct investment (FDI). In this study, gravity models were used to analyse the data for the Goethe Institut (Germany), the Cervantes Institute (Spain) and the Confucius Institute (China) to identify any stylised international patterns of the documented economic effects. The study finds significant positive effects on bilateral trade and FDI outflows for all three programmes, along with two important (i) the effects are stronger for non‐advanced economies and (ii) the effects are substantially larger on FDI than on trade. These results suggest that cultural institutes can be an effective policy tool in promoting FDI outflows, with the strongest effect realised when a home country locates its cultural institutes in host countries with developing economies. Importantly, results also suggest that the Chinese government's approach to extend its soft power through rapid expansion of Confucius Institutes worldwide has not been as successful as the efforts by the German Goethe Institut in increasing trade and FDI.

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“…The global rapid development and spread of Chinese language teaching and learning has been achieved through the establishment of Confucius Institutes (CIs) and Confucius classrooms. This has not been confined just to Kenya, but worldwide as part of the ambitious international diplomacy, opening up and reform strategy driven through coherent continental platforms like the Forum on China-Africa Cooperation (FOCAC) and the China-Africa partnership (Akhtaruzzaman, Berg, & Lien, 2017;Lo & Pan, 2016). These institutions were established in 2004 as non-profit public institutions that adopted flexible teaching approaches to suit local conditions in promoting Chinese language learning and teaching about the Chinese culture in countries outside of China.…”

Section: Chinese Language and Confucianism In Kenya Vis-a-vis China'smentioning

confidence: 99%

Chinese Language Teaching and Learning in Kenya in the Prospects of China’s Reform and Opening-up

Owaki¹,

Kathina²,

Khayeka–Wandabwa³

et al. 2019

edupij

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Teaching and learning of Chinese as a foreign language and its culture is complex for Kenyan learners. It requires them to consider contrasting intellectual, policy and economic dimensions that instead of aiding its propagation among Kenyan learners, could even facilitate a hindrance to its progression. Potential measures that could be embraced are examined in this study based on the current context in lieu of proper guidelines or policy for foreign language learning, and in the midst of China's reform and opening-up. The study adopts Stern's second language learning theoretical approach, documentary and discourse analysis as complementary to a preliminary exploratory survey. Chinese and Kenyan partnering institutions in higher education and its intersections through Chinese language development and cultural exchange are well-attuned towards attaining a competitive cadre of bilingually educated Kenyans who are appreciative of the cultural diversity between the two nations. This affords Chinese and Kenyan nationals the opportunity to engage with each other in efficient bidirectional exchanges for common intellectual and economic prosperity founded on various exchange agreements. In the quest for greater Chinese language and culture propagation, increased bidirectional participation of stakeholders in curriculum-related policymaking and implementation processes are sought. The mobilization of strategic resources through exchanges between China and Kenya hold the promise to a more certain cooperative future for all. Avenues on resource mobilization with a focus on efficient human resource management, together with an opportunities linkage framework, would benefit both countries, and thereby reinforce a common intellectual and economic prosperity.

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Confucius Institutes and FDI flows from China to Africa

Cited by 35 publications

References 33 publications

Effects of cultural institutes on bilateral trade and FDI flows: Cultural diplomacy or economic altruism?

Effects of cultural institutes on bilateral trade and FDI flows: Cultural diplomacy or economic altruism?

Asymmetric effects of cultural institutes on trade and foreign direct investment

Chinese Language Teaching and Learning in Kenya in the Prospects of China’s Reform and Opening-up

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