THE IMPACTS OF INSTITUTIONAL DISTANCE ON THE LOCATION OF CHINA’s OUTWARD FOREIGN DIRECT INVESTMENT IN ASEAN: An Empirical Research Based on CAGE Distance Framework

Abstract

As the world political and economic environment continues to change, the external environment faced by Chinese OFDI enterprises was becoming increasingly complex, with the impacts of institutional distance becoming more prominent.

A Study Exploring the Belt and Road Initiative and the Impact on the Cultural Differences in Africa Cooperative Countries

“…Kayalvizhi and M. Thenmozhi (2018), drawn a conclusion that techno-cultural factors are the main aspect affecting OFDI. And in the study of Xue Ye et al (2023), he explored the impact of cultural distance between the home country and the investor on OFDI, and concluded a significant negative correlation between the two business partners he continued to state the smaller the distance between the host country and investors culture in terms of cultural system, adaptation and adjustment of costs for investing firms and the more investing is required. When there is a greater cultural differences between host country and investor the OFDI entry mode of these investment will tend to focus on a joint venture mode (Xie & Yin, 2023); while Minkov, M. ( 2007) argued that the greater the cultural differences, the more investors tend to relay on 2004) suggested that cultural differences negatively moderate the location choice of resource-seeking, positively moderate the location choice of market-seeking, and have no significant effect on the location choice of strategic asset-seeking OFDI.…”