What drives outward FDI of Chinese firms? Testing the explanatory power of three theoretical frameworks

Chenqi Wang; Junjie Hong; Mario Kafouros; Agyenim Boateng

doi:10.1016/j.ibusrev.2011.05.004

What drives outward FDI of Chinese firms? Testing the explanatory power of three theoretical frameworks

Chenqi Wang, Junjie Hong, Mario Kafouros, Agyenim Boateng

Research output: Contribution to journal › Article

Abstract

This study examines the forces driving outward FDI of emerging-market firms. Its contribution lies in integrating and testing insights from institutional theory, industrial organization economics and the resource-based view of the firm. This approach enables us to consider three different levels of analysis – firm, industry and country – and, thus, to distinguish between different sources of variation. Using a large firm-level Chinese dataset, we offer new evidence indicating that government support and the industrial structure of the home country of the investing firm play a crucial role in explaining outward FDI. By contrast, technological and advertising resources tend to be less important.

Original language	English
Pages (from-to)	425-438
Number of pages	14
Journal	International Business Review
Volume	21
Issue number	3
DOIs	https://doi.org/10.1016/j.ibusrev.2011.05.004
Publication status	Published - Jun 2012

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Keywords

China
FDI
emerging-market firms

Cite this

Wang, C., Hong, J., Kafouros, M., & Boateng, A. (2012). What drives outward FDI of Chinese firms? Testing the explanatory power of three theoretical frameworks. International Business Review, 21(3), 425-438. https://doi.org/10.1016/j.ibusrev.2011.05.004

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abstract = "This study examines the forces driving outward FDI of emerging-market firms. Its contribution lies in integrating and testing insights from institutional theory, industrial organization economics and the resource-based view of the firm. This approach enables us to consider three different levels of analysis – firm, industry and country – and, thus, to distinguish between different sources of variation. Using a large firm-level Chinese dataset, we offer new evidence indicating that government support and the industrial structure of the home country of the investing firm play a crucial role in explaining outward FDI. By contrast, technological and advertising resources tend to be less important. ",

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Documents and Links

10.1016/j.ibusrev.2011.05.004