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The Determining Factors of Western Australia’s (WA) Foreign Investment in China

Author

Listed:
  • Yi Liu

    (Yi Liu is a Ph.D. candidate at the Curtin University of Technology, Perth, Western Australia 6845. E-mail: Yi.Liu@curtin.edu.au)

  • Cecil Pearson

    (Cecil Pearson is Senior Research Fellow at the School of Management, Curtin University of Technology, Perth, Western Australia 6845. E-mail: Cecil.Pearson@cbs.curtin.edu.au)

Abstract

Despite acknowledging that the economic recovery of Australia and particularly Western Australia from one of the worst global financial downturns will be coupled with a revived Chinese economy, there is a lack of knowledge about these connections. This study evaluates business drivers of Western Australian firms to appreciate how these factors enhance Chinese business engagement. The study findings demonstrate that market size, infrastructure and business ethics were significantly associated with intention to invest in China, but labour cost was not a primary driver. And while these relationships were influenced by personal, organizational and networking attributes, greater elucidation was obtained by interviewing managers. The evidence may benefit institutions intending to increase exposure to the Chinese marketplace.

Suggested Citation

  • Yi Liu & Cecil Pearson, 2011. "The Determining Factors of Western Australia’s (WA) Foreign Investment in China," Global Business Review, International Management Institute, vol. 12(1), pages 1-20, February.
    • Handle: RePEc:sae:globus:v:12:y:2011:i:1:p:1-20
    DOI: 10.1177/097215091001200101
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