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Assessing the effects of policies on China’s outward foreign direct investment

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  • Yin, Tong
  • De Propris, Lisa
  • Jabbour, Liza

Abstract

This paper discusses the determinants of China’s outward foreign direct investment (OFDI) with a special focus on the role of government policy. In particular, we investigate the types of policies that are most influential in promoting OFDI. Our main contribution is to analyse, for the first time, China’s OFDI policies by means of quantitative indicators. We refine policies definitions and distinguish between Regulation Policies, Service Policies, Promotion Policies and Supervision Policies, and we develop a methodology for collecting, screening and coding policies; then we create new indices to capture different types of policies. We find that Regulation Policies, Service Policies and the general attitude of the government have significant effects on China’s OFDI at the national level.

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  • Yin, Tong & De Propris, Lisa & Jabbour, Liza, 2021. "Assessing the effects of policies on China’s outward foreign direct investment," International Business Review, Elsevier, vol. 30(5).
    • Handle: RePEc:eee:iburev:v:30:y:2021:i:5:s0969593121000251
    DOI: 10.1016/j.ibusrev.2021.101818
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    More about this item

    Keywords

    Foreign direct investment policy; China; Outward foreign direct investment; Quantitative analysis; Institutional theory;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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