The determinants of Chinese outward foreign direct investment

TLDR: This paper investigated the determinants of Chinese outward direct investment and the extent to which three special explanations (capital market imperfections, special ownership advantages and institutional factors) need to be nested within the general theory of the multinational firm.

Abstract: This study investigates the determinants of Chinese outward direct investment (ODI) and the extent to which three special explanations (capital market imperfections, special ownership advantages and institutional factors) need to be nested within the general theory of the multinational firm. We test our hypotheses using official Chinese ODI data collected between 1984 and 2001. We find Chinese ODI to be associated with high levels of political risk in, and cultural proximity to, host countries throughout, and with host market size and geographic proximity (1984 to 1991) and host natural resources endowments (1992 to 2001). We find strong support for the argument that aspects of the special theory help to explain the behaviour of Chinese MNEs.

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Table 6 Results for the determinants of Chinese ODI

Full text

ERRATUM
The determinants of Chinese outward foreign
direct investment
Peter J Buckley, L Jeremy
Clegg, Adam R Cross, Xin Liu,
Hinrich Voss and Ping Zheng
Journal of International Business Studies (2009) 40, 353–354.
doi:10.1057/jibs.2008.102
Correction to: Journal of International Business Studies (2007) 38, 499–518.
doi: 10.1057/Palgrave.jibs.8400277
Owing to a production error, some values in Table 6 of this article
were incorrect. Specifically, a number of negative values for the
variables LPATENT, LPOL I, LIMP, LDIS and LINFDI were presented
without the necessary minus signs. A corrected version of Table 6 is
presented below.
Journal of International Business Studies (2009) 40, 353–354
&
2009 Academy of International Business All rights reserved 0047-2506
www.jibs.net

Table 6 Results for the determinants of Chinese ODI
POLS REs REs 1984–1991 REs 1992–2001 REs OECD REs non-OECD
(1) (2) (3) (4) (5) (6)
LGDP (H1a) 0.3463 0.3448 0.5085 0.2448 0.6674 0.3472
(0.1249)*** (0.1640)** (0.2787)* (0.2009) (0.3650)* (0.2238)
LORE (H2) 0.1713 0.1447 0.1039 0.2253 0.0138 0.1820
(0.0742)** (0.1057) (0.1654) (0.1206)* (0.3906) (0.1144)
LPATENT (H3) 0.0223 0.0363 0.0794 0.0516 0.0752 0.0262
(0.0309) (0.0359) (0.0605) (0.0439) (0.0773) (0.0447)
LPOLI (H4) 2.4762 1.7997 0.7347 2.6308 1.8973 1.4560
(0.5822)*** (0.6974)** (1.0846) (0.9750)*** (1.8807) (0.8903)
CP (H5) 1.4779 1.4929 1.4520 1.5338 2.0464 0.8414
(0.2588)*** (0.4276)*** (0.6059)** (0.4634)*** (0.8415)** (0.6563)
TD92 (H6) 0.6595 0.6961 0.8033 0.9489 0.4104
(0.2698)** (0.2534)*** (0.3002)*** (0.3178)*** (0.4021)
LERATE (H7) 0.0471 0.0688 0.1032 0.0246 0.2319 0.0142
(0.0337) (0.0463) (0.0638) (0.0618) (0.1866) (0.0540)
LINF (H8) 0.2406 0.1891 0.4664 0.1323 0.3487 0.1320
(0.0628)*** (0.0734)** (0.1167)*** (0.0896) (0.1579)** (0.0914)
LEXP (H9) 0.6934 0.6153 0.2731 0.8275 0.4062 0.8375
(0.1084)*** (0.1291)*** (0.2094) (0.1803)*** (0.2053)** (0.1964)***
LIMP (H10) 0.2601 0.2544 0.3087 0.3098 0.1914 0.3677
(0.0931)*** (0.1027)** (0.2061) (0.1204)** (0.1898) (0.1374)***
LDIS (H11) 0.1905 0.1554 0.9266 0.2885 0.7452 0.0171
(0.2035) (0.2972) (0.4794)* (0.3400) (0.7360) (0.4259)
LINFDI (H12) 0.0927 0.0510 0.3294 0.0589 0.1181 0.1218
(0.0886) (0.1244) (0.1562)** (0.0439) (0.2480) (0.1546)
N 402 402 116 286 198 204
LM test w
2
(1)¼15.43***
Adj. R
2
0.3642 0.6019 0.6142 0.6024 0.5763 0.6737
Notes: Standard errors are in parentheses.
***, ** and * indicate that the coefficient is significant at the 1, 5 and 10% levels, respectively.
Journal of International Business Studies
Erratum
354

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Owing to a production error, some values in Table 6 of this article were incorrect. A corrected version of Table 6 is presented below.