The Belt and Road Initiative, Asian infrastructure investment bank, and the role of enterprise heterogeneity in China’s outward foreign direct investment

Zhao, Jinjing; Lee, Jong‐Chul

doi:10.1080/14631377.2020.1745560

Cited by 16 publications

(14 citation statements)

References 32 publications

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“…As they achieved the goal of the investing country, facilitated the accumulation of capital in host countries for investment, and created more employment opportunities to promote their economic development. Based on existing research such as Buckley et al ( 2007 ); Buckley (2016 ); Li et al ( 2018 ); Saidi et al ( 2020 ); Zhao and Lee ( 2021 ). To correctly reflect the effect of independent variables on OFDI, the model is expressed as: Y represents OFDI, E denotes economy, K represents energy, L represents logistics infrastructure, and P denotes politics.…”

Section: Methodsmentioning

confidence: 99%

“…Considering serial correlation and endogeneity in the ordinary least squares estimation can lead to biased estimates (Blundell and Bond, 1998 ). We refer to the fully modified ordinary least square method (FMOLS) developed by Li et al ( 2018 ) and Zhao and Lee ( 2021 ) for heterogeneous cointegrated panels. We assess the short and long-term impact of the economic, energy, logistics infrastructure, and political climate of the investment target country on China and USA’s OFDI by conducting panel-based VECM.…”

Section: Methodsmentioning

confidence: 99%

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The theoretical systems of OFDI location determinants in global north and global south economies

Liu

Zhu

et al. 2023

Humanit Soc Sci Commun

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With economic transformation and industrial development, Outward Foreign Direct Investment (OFDI) from southern countries has increased rapidly. The theoretical system established by global north countries with their dominant position in the international investment market has been impacted by global south countries. The existing OFDI theory has always been based on developed countries and can only explain some international investment behavior of southern countries. The Vector Error Correction Model (VECM) is applied to conduct empirical analysis for the impact of the target country’s investment climate on the location determinants of OFDI, by applying China and the United States as example which is focusing on 172 countries from 2005 to 2019. The results reveal significant differences in the theoretical system of foreign investment between China and the United States. For China, investment climate factors such as energy, logistics infrastructure, and politics are discover as the main drivers of China’s OFDI. However, USA’s OFDI is a corporate behavior aimed at economic interests. The differences in OFDI theoretical systems and provides policy advice for northern and southern countries and departments is the major contribution of this research.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

The theoretical systems of OFDI location determinants in global north and global south economies

Liu

Zhu

et al. 2023

Humanit Soc Sci Commun

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“…State-owned enterprises mainly carry out China’s OFDI as the principal investor (Zhao and Lee 2021 ). The BRI put forward by the Xi Jinping government and the investment in the member countries of the BRI all have a particular political color (Cheung and Qian 2009 ).…”

Section: Literature Reviewmentioning

confidence: 99%

The determinants of China’s outward foreign direct investment: a vector error correction model analysis of coastal and landlocked countries

Liu

Zhao

et al. 2022

Econ Change Restruct

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An essential objective of China’s outward foreign direct investment (OFDI) is to expand international trade and access to overseas markets to garner resources and improve transportation routes. This study identifies the determinants of China’s OFDI activities in the short and long term, focusing on 138 countries that are part of China’s Belt and Road Initiative (BRI). It is the first study to evaluate the system’s contribution of location determinants, including the four factors of economy, logistics, energy, and politics, to China’s OFDI by employing a vector error correction model with panel data from 2007 to 2019. In addition, we compare the influence of the variables in coastal and landlocked countries. Panel Granger causality and impulse response tests, variance decomposition, and forecast analysis were conducted to analyze and forecast China’ OFDI. The results show that China’s OFDI in both coastal and landlocked countries is statistically sensitive to the variables of economy, energy, logistics, and politics in host countries engaged in the BRI. It also shows that improving logistics infrastructure and the political investment environment in landlocked countries, this can positively attract China’s OFDI. Supplementary Information The online version contains supplementary material available at 10.1007/s10644-022-09407-2.

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“…One key question still remains unanswered: if the AIIB is only marginally important in terms of its financial capacity, why did Beijing decide to set up the new MDB? Zhao and Lee (2020) believe that Beijing intends to use the AIIB to facilitate the capital allocation of Outward Foreign Direct Investment (OFDI), thereby enhancing the BRI and China's geo-economic international influence. In addition, if the AIIB prospers, this may further inspire Beijing to gear the BRI, originally designed largely as a unilateral tool, towards multilateral arrangements that will ensure its ultimate success (Macikenaite, 2020).…”

Section: Putting the Aiib Into The Context Of The Brimentioning

confidence: 99%

The Asian Infrastructure Investment Bank: A Qualified Success for Beijing's Economic Statecraft

Haga

2021

Journal of Current Chinese Affairs

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In 2013, China's growing economic capacities motivated Beijing to launch a multilateral bank to advance its diplomatic agenda. Scholars are still debating precisely what Beijing seeks to accomplish through the Asian Infrastructure Investment Bank (AIIB). This article surveys the key literature on the AIIB, identifying twenty scholarly interpretations of Beijing's strategic goals. The purpose of this research is to understand Beijing's initial design for this bank and evaluate whether this new multilateral development bank can function as an effective instrument for Beijing's economic statecraft. Over its first five years, as an economic tool for Beijing, the AIIB has performed quite remarkably well. The bank not only operates smoothly, generating a reasonable amount in net income for its shareholders, but also serves Beijing's strategic purposes in expanding China's regional influence, enhancing its international status, and ascending toward global leadership.

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The Belt and Road Initiative, Asian infrastructure investment bank, and the role of enterprise heterogeneity in China’s outward foreign direct investment

Cited by 16 publications

References 32 publications

The theoretical systems of OFDI location determinants in global north and global south economies

The theoretical systems of OFDI location determinants in global north and global south economies

The determinants of China’s outward foreign direct investment: a vector error correction model analysis of coastal and landlocked countries

The Asian Infrastructure Investment Bank: A Qualified Success for Beijing's Economic Statecraft

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