Empirics of china's outward direct investment
TL;DR: In this article, the empirical determinants of China's outward direct investment (ODI) are investigated and it is found that China's investments in developed and developing countries are driven by different sets of factors.
Abstract: . We investigate the empirical determinants of China's outward direct investment (ODI). It is found that China's investments in developed and developing countries are driven by different sets of factors. Subject to the differences between developed and developing countries, there is evidence that: (i) both market-seeking and resource-seeking motives drive China's ODI; (ii) Chinese exports to developing countries induce China's ODI; (iii) China's international reserves promote its ODI; and (iv) Chinese capital tends to agglomerate among developed economies but diversify among developing economies. Similar results are obtained using alternative ODI data. We do not find substantial evidence that China invests in African and oil-producing countries mainly for their natural resources.
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TL;DR: Using the Antecedents, Decisions and Outcomes (ADO) format as an organizing framework, the authors gives an overview of the literature on different dimensions and characteristics of outward foreg...
Abstract: Using the Antecedents, Decisions and Outcomes (ADO) format as an organizing framework, this article gives an overview of the literature on different dimensions and characteristics of outward foreig...
322 citations
TL;DR: In this article, the authors apply and extend resource dependence theory to comparatively investigate major factors that determine the level of cross-border mergers and acquisitions (M&As) by emerging market firms (EMFs) in developed and developing markets.
243 citations
TL;DR: In this article, the main drivers of China's outward FDI across a range of variables including bi lateral and multi lateral trade, market size, GDP growth, openness and resource endowment are investigated.
220 citations
TL;DR: A detailed analysis of 138 peer-reviewed articles in 41 journals published in the last 12 years (2001-2012) that focus on Chinese outward foreign direct investment from a theoretical advancement perspective is presented in this paper.
Abstract: This article reports a detailed analysis of 138 peer-reviewed articles in 41 journals published in the last 12 years (2001-2012) that focus on Chinese outward foreign direct investment from a theoretical advancement perspective. It assesses how the topic has been explored both conceptually and empirically and identifies the substantive contributions to the literature using a thematic analysis. The article argues that research on the international expansion of Chinese multinational corporations offers a unique opportunity to extend and develop extant theorizing in four primary research streams: the latecomer perspective; Chinese state and government influences; the dynamics of firms and institutions; and the liability of foreignness. Building on the results of this analysis, the article offers five recommendations as promising ways to open up theoretical inquiry: (1) cross-fertilization among the four research streams; (2) integration of resource- and institution-based theories with other theoretical lenses; (3) research on the process dimensions using a longitudinal approach; (4) adoption of multi-levels of analysis; and (5) consideration of the wider emerging market literature.
177 citations
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TL;DR: In this article, the authors consider a model in which an imperfectly competitive manufacturing sector produces goods which are used both for final consumption and as intermediates, and they show that when transport costs fall below a critical value, a core-periphery pattern forms spontaneously, and nations that find themselves in the periphery suffer a decline in real income.
Abstract: The paper considers a model in which an imperfectly competitive manufacturing sector produces goods which are used both for final consumption and as intermediates. Intermediate usage creates cost and demand linkages between firms and a tendency for manufacturing agglomeration. How does globalization affect the location of manufacturing and the gains from trade? At high transport costs all countries have some manufacturing industry, but when transport costs fall below a critical value a core-periphery pattern forms spontaneously, and nations that find themselves in the periphery suffer a decline in real income. As transport costs continue to fall there comes a second stage of convergence in real incomes, in which the peripheral nations gain and the core nations may well lose.
2,522 citations
TL;DR: In this paper, the authors focus on manufacturing investments by U.S. multinationals in the 1980s and conclude that high-cost tournament play is unnecessary for countries with good infrastructure development, specialized input suppliers and an expanding domestic market.
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TL;DR: In this article, the effects of the determinants of foreign direct investment (FDI) in 29 Chinese regions from 1985 to 1995 were investigated. And they found that large regional market, good infrastructure, and preferential policy had a positive effect but wage cost had a negative effect on FDI.
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TL;DR: This article examined the location choices of 751 Japanese manufacturing plants built in the United States since 1980 and found that industry-level agglomeration benefits played an important role in location decisions.
984 citations
TL;DR: In this paper, the authors investigate whether there is a link between cognitive ability, risk aversion, and impatience, using a representative sample of the population and incentive compatible measures, and find that lower cognitive ability is associated with greater risk aversion and more pronounced impatience.
Abstract: Is the way that people make risky choices, or tradeoffs over time, related to cognitive ability? This paper investigates whether there is a link between cognitive ability, risk aversion, and impatience, using a representative sample of the population and incentive compatible measures. We conduct choice experiments measuring risk aversion, and impatience over an annual time horizon, for a randomly drawn sample of roughly 1,000 German adults. Subjects also take part in two different tests of cognitive ability, which correspond to sub-modules of one of the most widely used IQ tests. Interviews are conducted in subjects' own homes. We find that lower cognitive ability is associated with greater risk aversion, and more pronounced impatience. These relationships are significant, and robust to controlling for personal characteristics, educational attainment, income, and measures of credit constraints. We perform a series of additional robustness checks, which help rule out other possible confounds.
883 citations