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 journalArticle


    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 languageEnglish
    Pages (from-to)425-438
    Number of pages14
    JournalInternational Business Review
    Issue number3
    Publication statusPublished - Jun 2012



    • China
    • FDI
    • emerging-market firms

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