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Confucius institute effects on China's trade and FDI: Isn't it delightful when folks afar study Hanyu?

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Listed:
  • Lien, Donald
  • Oh, Chang Hoon
  • Selmier, W. Travis

Abstract

This paper employs gravity models to analyze the influence of Confucius Institutes (CI) on outward trade and FDI flows from China. We find significant increases in both Chinese exports and outward FDI flows to developing countries through establishment and operation of CIs, but little impact on the same flows to developed countries. In addition, CIs command stronger impacts on FDI than on outward trade.

Suggested Citation

  • Lien, Donald & Oh, Chang Hoon & Selmier, W. Travis, 2012. "Confucius institute effects on China's trade and FDI: Isn't it delightful when folks afar study Hanyu?," International Review of Economics & Finance, Elsevier, vol. 21(1), pages 147-155.
    • Handle: RePEc:eee:reveco:v:21:y:2012:i:1:p:147-155
    DOI: 10.1016/j.iref.2011.05.010
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    More about this item

    Keywords

    Confucius Institute; Trade; Foreign Direct Investment; China; Soft power;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other

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