The Value of Local Externalities in Country-of-Origin Clusters: Evidence from China

Urzelai, Berrbizne; Puig, Francisco

doi:10.1007/978-3-030-03931-8_6

Cited by 3 publications

(1 citation statement)

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“…The institutional preference of the OFDI varies with investment motives. Exploring the OFDI in different countries, scholars have proved the profound impacts of investment motives on corporate OFDI [22][23][24]. From the perspective of investment motives, Ramasamy et al [25] probed deep into the location selection of China's OFDI, revealing that many state-owned enterprises tend to conduct the OFDI in countries with abundant natural resources, poor political environment, and high political risks.…”

Section: Investment Motives and China's Ofdimentioning

confidence: 99%

Empirical Analysis on the Sustainable Development of China’s Outward Foreign Direct Investment from the Perspective of Economic Institution

Chang¹,

Juan²

2020

IJSDP

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The countries along the Belt and Road (B&R) are important destinations of China's outward foreign direct investment (OFDI). Based on the panel data (2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012)(2013)(2014)(2015)(2016)(2017)) on China's OFDI in 65 B&R countries, this paper sets up a Heckman two-stage model, and then empirically analyzes how China's OFDI is affected by the difference between China and the host country in economic institution. In addition, the authors explored whether China has institutional preference in the OFDI with different investment motives. The empirical test shows that: investment selection and investment scale of China's OFDI are promoted to different degrees by the economic institution of the host country, and the absolute distance between China and the host country in economic institution; China has different institutional preferences in market-seeking OFDI between the selection stage and the investment stage; In terms of technology-seeking OFDI, host countries with short economic institutional distance are preferred in the selection stage, and host countries with good economic institution and long economic institutional distance are preferred in the investment stage. The research results provide empirical evidence for China to continuously implement OFDI in B&R countries and create a green investment environment.

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