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Full-Text Articles in Business
Macroeconomic Prospects For China’S Outward Fdi, Ilan Alon, Tanya Molodtsova, Jian Zhang
Macroeconomic Prospects For China’S Outward Fdi, Ilan Alon, Tanya Molodtsova, Jian Zhang
Faculty Publications
This article presents evidence from panel data on overseas foreign direct investment (OFDI) by Chinese firms in 103 countries during 2003-2007. The data suggest that Chinese imports, unlike Chinese exports, stimulate investment in the country of origin. This article supports the theory that Chinese investment abroad is horizontal and designed to serve the Chinese local market (import platform investment). Estimates suggest that a 1% change in imports from China will lead to a 0.15% change in Chinese OFDI. We also find that an appreciation of the Chinese exchange rate will have a strong influence on firm entry decisions.
The Role And Importance Of The Chinese Government For Chinese Outward Foreign Direct Investments, Marc Fetscherin, Philippe Gugler
The Role And Importance Of The Chinese Government For Chinese Outward Foreign Direct Investments, Marc Fetscherin, Philippe Gugler
Faculty Publications
Chinese outward direct investments show a strong positive trend over recent years and have attracted considerable attention from academia and the business press. Many observers and commentators express interest in the role the Chinese government plays in the activities and decision-making of Chinese multinational enterprises (MNEs) in connection with their foreign direct investments (FDI). This article makes a contribution by investigating the relationship between the Chinese government and MNEs in connection with their outward foreign direct investment (OFDI). We present a 2x2 matrix where one dimension includes the interest (high/low) of the Chinese government and the other the interest of …