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Do Chinese state-owned and private enterprises differ in their internationalization strategies?

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Author Info

  • Amighini, Alessia A.
  • Rabellotti, Roberta
  • Sanfilippo, Marco

Abstract

We empirically analyze the host-country determinants of Chinese outward direct investments (ODI) in the period from 2003 to 2008, using disaggregated data by country and sector and distinguishing between state-owned or controlled enterprises (SOEs) and privately-owned firms. Our results show that the pattern of Chinese ODI differs according to corporate ownership. Private firms are attracted by large markets and host-country strategic assets and are averse to economic and political risks when choosing investment locations abroad. Differently, state-owned or controlled enterprises follow the strategic needs of their home country and invest more in natural resource sectors, being largely indifferent to the political and economic conditions in the host countries.

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Bibliographic Info

Article provided by Elsevier in its journal China Economic Review.

Volume (Year): 27 (2013)
Issue (Month): C ()
Pages: 312-325

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Handle: RePEc:eee:chieco:v:27:y:2013:i:c:p:312-325

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Web page: http://www.elsevier.com/locate/chieco

Related research

Keywords: China; Foreign direct investment; Internationalization; Corporate ownership;

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References

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Citations

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Cited by:
  1. Amighini, Alessia A. & Franco, Chiara, 2013. "A sector perspective on Chinese outward FDI: The automotive case," China Economic Review, Elsevier, vol. 27(C), pages 148-161.
  2. Amighini, Alessia & Cozza, Claudio & Rabellotti, Roberta & Sanfilippo, Marco, 2014. "An analysis of Chinese outward FDIs in Europe with firm-level data," CIRCLE Electronic Working Papers 2014/2, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.

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