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 › peer-review

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

Keywords

China
FDI
emerging-market firms

Documents and Links

10.1016/j.ibusrev.2011.05.004

Fingerprint Dive into the research topics of 'What drives outward FDI of Chinese firms? Testing the explanatory power of three theoretical frameworks'. Together they form a unique fingerprint.

Cite this

@article{8356159afdce468b9760e72029ee27a6,

title = "What drives outward FDI of Chinese firms? Testing the explanatory power of three theoretical frameworks",

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. ",

keywords = "China, FDI , emerging-market firms",

author = "Chenqi Wang and Junjie Hong and Mario Kafouros and Agyenim Boateng",

year = "2012",

month = jun,

doi = "10.1016/j.ibusrev.2011.05.004",

language = "English",

volume = "21",

pages = "425--438",

journal = "International Business Review",

issn = "0969-5931",

publisher = "Elsevier",

number = "3",

}

TY - JOUR

T1 - What drives outward FDI of Chinese firms? Testing the explanatory power of three theoretical frameworks

AU - Wang, Chenqi

AU - Hong, Junjie

AU - Kafouros, Mario

AU - Boateng, Agyenim

PY - 2012/6

Y1 - 2012/6

N2 - 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.

AB - 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.

KW - China

KW - FDI

KW - emerging-market firms

U2 - 10.1016/j.ibusrev.2011.05.004

DO - 10.1016/j.ibusrev.2011.05.004

M3 - Article

VL - 21

SP - 425

EP - 438

JO - International Business Review

JF - International Business Review

SN - 0969-5931

IS - 3

ER -