The determinants of Chinese outward foreign direct investment

Peter J. Buckley; L. Jeremy Clegg; Adam R. Cross; Xin Liu; Hinrich Voss; Ping Zheng

doi:10.1057/palgrave.jibs.8400277

The determinants of Chinese outward foreign direct investment

Peter J. Buckley, L. Jeremy Clegg, Adam R. Cross^*, Xin Liu, Hinrich Voss, Ping Zheng

^*Corresponding author for this work

University of Leeds

Research output: Contribution to journal › Article › peer-review

1792 Citations (Scopus)

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 (1984-1991) and host natural resources endowments (1992-2001). We find strong support for the argument that aspects of the special theory help to explain the behaviour of Chinese multinational enterprises.

Original language	English
Pages (from-to)	499-518
Number of pages	20
Journal	Journal of International Business Studies
Volume	38
Issue number	4
DOIs	https://doi.org/10.1057/palgrave.jibs.8400277
Publication status	Published - 19 Jul 2007
Externally published	Yes

Keywords

China
Chinese multinational firms
Outward FDI
Theory of the multinational enterprise

Access to Document

10.1057/palgrave.jibs.8400277

Cite this

@article{2e1cae76f8c84329a9e804de4e1bdd0e,

title = "The determinants of Chinese outward foreign direct investment",

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 (1984-1991) and host natural resources endowments (1992-2001). We find strong support for the argument that aspects of the special theory help to explain the behaviour of Chinese multinational enterprises.",

keywords = "China, Chinese multinational firms, Outward FDI, Theory of the multinational enterprise",

author = "Buckley, {Peter J.} and Clegg, {L. Jeremy} and Cross, {Adam R.} and Xin Liu and Hinrich Voss and Ping Zheng",

year = "2007",

month = jul,

day = "19",

doi = "10.1057/palgrave.jibs.8400277",

language = "English",

volume = "38",

pages = "499--518",

journal = "Journal of International Business Studies",

issn = "0047-2506",

number = "4",

}

TY - JOUR

T1 - The determinants of Chinese outward foreign direct investment

AU - Buckley, Peter J.

AU - Clegg, L. Jeremy

AU - Cross, Adam R.

AU - Liu, Xin

AU - Voss, Hinrich

AU - Zheng, Ping

PY - 2007/7/19

Y1 - 2007/7/19

N2 - 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 (1984-1991) and host natural resources endowments (1992-2001). We find strong support for the argument that aspects of the special theory help to explain the behaviour of Chinese multinational enterprises.

AB - 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 (1984-1991) and host natural resources endowments (1992-2001). We find strong support for the argument that aspects of the special theory help to explain the behaviour of Chinese multinational enterprises.

KW - China

KW - Chinese multinational firms

KW - Outward FDI

KW - Theory of the multinational enterprise

UR - http://www.scopus.com/inward/record.url?scp=34547356019&partnerID=8YFLogxK

U2 - 10.1057/palgrave.jibs.8400277

DO - 10.1057/palgrave.jibs.8400277

M3 - Article

AN - SCOPUS:34547356019

SN - 0047-2506

VL - 38

SP - 499

EP - 518

JO - Journal of International Business Studies

JF - Journal of International Business Studies

IS - 4

ER -

The determinants of Chinese outward foreign direct investment

Abstract

Keywords

Access to Document

Other files and links

Fingerprint

Cite this