Do Chinese state-owned and private enterprises differ in their internationalization strategies?
AbstractWe 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 InfoArticle provided by Elsevier in its journal China Economic Review.
Volume (Year): 27 (2013)
Issue (Month): C ()
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Web page: http://www.elsevier.com/locate/chieco
China; Foreign direct investment; Internationalization; Corporate ownership;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
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