Have a personal or library account? Click to login
How Do Cultural and Institutional Distance Affect China’s OFDI towards the OBOR Countries? Cover

How Do Cultural and Institutional Distance Affect China’s OFDI towards the OBOR Countries?

By: Lin Zhang and  Zheqian Xu  
Open Access
|Jul 2017

References

  1. Aleksynska, M. & Havrylchyk, O. (2013), ‘FDI from the south: The role of institutional distance and natural resources,’ European Journal of Political Economy, vol. 29, no. 1, pp. 38-53. https://doi.org/10.1016/j.ejpoleco.2012.09.00110.1016/j.ejpoleco.2012.09.001
  2. Buckley, P. J.; Clegg, L. J.; Cross, A.R.; Liu, X.; Voss, H. & Zheng, P. (2007), ‘The determinants of Chinese outward foreign direct investment,’ Journal of International Business Studies, vol. 38, no. 4, pp. 499-518. https://doi.org/10.1057/palgrave.jibs.840027710.1057/palgrave.jibs.8400277
  3. Busse, M.; Königer, J. & Nunnenkamp, P. (2010), ‘FDI Promotion through Bilateral Investment Treaties: More Than a Bit,’ Review of World Economics, vol. 146, no. 1, pp. 147-177. https://doi.org/10.1007/s10290-009-0046-x10.1007/s10290-009-0046-x
  4. BYD Europe (n.d.), BYD Company Ltd. [Homepage] Retrieved from http://www.bydeurope.com/news/news.php?action=readnews&page=1&nid=231 [accessed 9 May 2017]
  5. Cheung Y. & Qian X. (2009), “Empirics of China’s outward direct investment,” Pacific Economic Review, vol. 14, no. 3, pp. 312-341. https://doi.org/10.1111/j.1468-0106.2009.00451.x10.1111/j.1468-0106.2009.00451.x
  6. Chin, H. & He, W. (2016), The Belt and Road Initiative: 65 Countries and Beyond, Hong Kong: Fung Business Intelligence Centre.
  7. China Huadian Corporation (n.d.), [Homepage] Retrieved from http://eng.chd.com.cn/webfront/webpage/web/contentList/channelId/f3e3fbb5093f4702a0603b075f6ff263/pageNo/1 [accessed 8 May 2017]
  8. Desbordes, R. & Vicard, V. (2009), ‘Foreign Direct Investment and Bilateral Investment Treaties: An International Political Perspective,’ Journal of Comparative Economics, vol. 37, no. 3, pp. 372-386. https://doi.org/10.1016/j.jce.2009.05.00110.1016/j.jce.2009.05.001
  9. Dikova, D.; Sahib, P. R. & Witteloostuijn, A. V. (2010), ‘Cross-border acquisition abandonment and completion: the effect of institutional differences and organizational learning in the international business service industry, 1981-2001,’ Journal of International Business Studies, vol. 41, no. 2, pp. 223-245. https://doi.org/10.1057/jibs.2009.1010.1057/jibs.2009.10
  10. Filippaios, F.; Papanastassiou, M. & Pearce, R. (2003), ‘The evolution of US outward foreign direct investment in the Pacific Rim: A cross-time and country analysis,’ Applied Economics, vol. 35, no. 16, pp. 1779-1787. https://doi.org/10.1080/000368403200015422010.1080/0003684032000154220
  11. Flores, R. G. & Aguilera, R. V. (2007), ‘Globalization and location choice: an analysis of US multinational firms in 1980 and 2000,’ Journal of International Business Studies, vol. 38, no. 7, pp. 1187-1210. https://doi.org/10.1057/palgrave.jibs.840030710.1057/palgrave.jibs.8400307
  12. Kang, Y. F. & Jiang, F. M. (2012), ‘FDI location choice of Chinese multinationals in East and Southeast Asia: Traditional economic factors and institutional perspective,’ Journal of World Business, vol. 47, no. 1, pp. 45-53. https://doi.org/10.1016/j.jwb.2010.10.01910.1016/j.jwb.2010.10.019
  13. Kogut, B. & Singh, H. (1988), ‘The effect of national culture on the choice of entry mode,’ Journal of International Business Studies, vol. 19, no. 3, pp. 411-432. https://doi.org/10.1057/palgrave.jibs.849039410.1057/palgrave.jibs.8490394
  14. Kolstad, I. & Wiig, A. (2012), ‘What determines Chinese outward FDI?’ Journal of World Business, vol. 47, no. 1, pp. 26-34. https://doi.org/10.1016/j.jwb.2010.10.01710.1016/j.jwb.2010.10.017
  15. Kostova, T. (1997), ‘Country institutional profile: concept and measurement’ in Academy of Management Proceedings, no. 1, pp. 180-184. https://doi.org/10.5465/ambpp.1997.498133810.5465/ambpp.1997.4981338
  16. Lankhuizen M.; de Groot H. L. F. & Linders, G.-J. M. (2011), ‘The trade-off between foreign direct investment and exports: the role of multiple dimensions of distance,’ The World Economy, vol. 34, no. 8, pp. 1395-1416. https://doi.org/10.1111/j.1467-9701.2011.01335.x10.1111/j.1467-9701.2011.01335.x
  17. Li, P.; Meng, H. & Li, Y. (2014), “Bilateral investment agreements and China’s outward foreign direct investment: from the perspective of institutional distance,” World Economy Study, vol. 33, no. 12, pp. 53-58.
  18. Meyer, K. E.; Estrin, S.; Bhaumik, S. K. & Peng, M. W. (2009), ‘Institutions, resources, and entry strategies in emerging economies,’ Strategic Management Journal, vol. 30, no. 1, pp. 61-80. https://doi.org/10.1002/smj.72010.1002/smj.720
  19. Ministry of Commerce of PRC (2016), 2016 Report on development of China’s outward investment and economic cooperation, Ministry of Commerce of the People’s Republic of China.
  20. Neumayer, E. & Spess, L. (2005), ‘Do bilateral investment treaties increase foreign direct investment to developing countries?’ World Development, vol. 3, no. 1, pp. 31-49. https://doi.org/10.1016/j.worlddev.2005.07.00110.1016/j.worlddev.2005.07.001
  21. NDRC (2015), ‘Vision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Road,’ National Development and Reform Commission, Ministry of Foreign Affairs and Ministry of Commerce of the People’s Republic of China.
  22. OECD (2015), ‘China in a Changing Global Environment.’ Retrieved from http://www.oecd.org/china/china-in-a-changing-global-environment_EN.pdf [accessed 8 May 2017]
  23. Qi, J. H. & Yang, L. (2012), ‘Determinants of Chinese OFDI Location: Based on the Geographical Distance and Cultural Distance Test,’ Economic Geography, vol. 32, no. 12, pp. 40-46.
  24. Ramasamy, B.; Yeung M. & Laforet, S. (2012), “China’s outward foreign direct investment: location choice and firm ownership,” Journal of World Business, vol. 47, no. 1, pp. 17-25. https://doi.org/10.1016/j.jwb.2010.10.01610.1016/j.jwb.2010.10.016
  25. Randøy, T. & Dibrell, C. C. (2002), ‘How and why Norwegian MNCs commit resources abroad: beyond choice of entry mode,’ Management International Review, vol. 42, no. 2, pp. 119-140.
  26. Statistical Bulletin (2015), 2014 Statistical Bulletin of China’s Outward Foreign Direct Investment, Ministry of Commerce, National Bureau of Statistics and State Administration of Foreign Exchange, Beijing: China Statistics Press.
  27. Thomas, D. E. & Grosse, R. (2001), ‘Country-of-origin determinants of Foreign Direct Investment in an emerging market: the case of Mexico,’ Journal of International Management, vol. 7, no. 1, pp. 59-79. https://doi.org/10.1016/S1075-4253(00)00040-510.1016/S1075-4253(00)00040-5
  28. Tian, H. (2015), ‘The regional differences of the influence of national cultural distance on Chinese import-export trade,’ Economic Geography, vol. 35, no. 2, pp. 22-29.
  29. UNCTAD (2016), World Investment Report 2016: Investor Nationality-Policy Challenges, United Nations Conference on Trade and Development, Geneva: UN.
  30. World Bank (2014), Sustainable Energy for All (SE4ALL) database. Retrieved from http://data.worldbank.org/indicator/EG.ELC.ACCS.ZS?locations=KH&view=chart [accessed 8 May 2017]
  31. World Values Survey (n.d.), WVS. [Homepage] Retrieved from http://www.worldvaluessurvey.org/wvs.jsp [accessed 8 May 2017]
  32. Xinhua (2016), “Chinese enterprises enter ‘Go Global’ era 4.0.” Retrieved from http://english.gov.cn/news/top_news/2016/04/11/content_281475325205328.htm [accessed 8 May 2017]
  33. Xu, D. & Shenkar, O. (2002), ‘Institutional distance and the multinational enterprises,’ Academy of Management Review, vol. 7, no. 4, pp. 608-618.10.2307/4134406
  34. Xu, H. L. & Li, L. H. (2011), ‘The effects of cultural differences on location decisions of Chinese foreign direct investment,’ Statistics and Decision, vol. 27, no. 17, pp. 154-156.
  35. Yin, H. F. & Lu, M. H. (2011), ‘Cultural distance and Foreign Direct Investment flows: the S-curve hypothesis,’ South China Journal of Economics, vol. 29, no. 1, pp. 26-38.
  36. Zhiqiye (n.d.), ‘List of Chinese companies investing abroad.’ Retrieved from http://www.zhiqiye.com/report/global/1.html [accessed 21 Oct 2016]
  37. Zong, F. Y.; Lu, J. Y. & Wu, C. Q. (2012), ‘Bilateral investment treaties, institutional environment and Outward FDI location choices of firms-an empirical study of Chinese listed firms,’ Economic Research Journal, vol. 57, no. 5, pp. 71-82.
DOI: https://doi.org/10.1515/bjes-2017-0003 | Journal eISSN: 2674-4619 | Journal ISSN: 2674-4600
Language: English
Page range: 24 - 42
Published on: Jul 8, 2017
Published by: Tallinn University of Technology
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year

© 2017 Lin Zhang, Zheqian Xu, published by Tallinn University of Technology
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.