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Chinese and Indian Multinationals: A Firm-Level Analysis of their Investments in Europe

Author

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  • Amendolagine , Vito

    (Dipartimento di Scienze Politiche Sociali – Università di Pavia)

  • Cozza , Claudio

    (Dipartimento di Scienze Economiche, Aziendali, Matematiche e Statistiche- Università di Trieste)

  • Rabellotti , Roberta

    (Dipartimento di Scienze Politiche Sociali – Università di Pavia)

Abstract

In this paper we aim to contribute to the literature on Chinese and Indian multinationals investing in Europe, through an empirical investigation of their identity and characteristics and the association between these features and their international business strategies. The investigation exploits a dataset at the level of the investing firms. In relation to mode of entry, we find that the greenfield is a more likely option for large-sized companies, and that weak propensity for innovation is associated with a low probability to enter through a merger or acquisition. A high propensity for innovation is related to asset-seeking FDI, while high profitability is needed to invest in the core EU countries. Finally, very large size characterizes companies that invest in more than country.

Suggested Citation

  • Amendolagine , Vito & Cozza , Claudio & Rabellotti , Roberta, 2014. "Chinese and Indian Multinationals: A Firm-Level Analysis of their Investments in Europe," Papers in Innovation Studies 2014/27, Lund University, CIRCLE - Centre for Innovation Research.
    • Handle: RePEc:hhs:lucirc:2014_027
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    Cited by:

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    2. Hongping Du & Liliana Mitkova & Na Wang, 2020. "The Paths of Internationalization of Chinese Innovative Firms," Sustainability, MDPI, vol. 12(6), pages 1-27, March.

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    More about this item

    Keywords

    China; India; FDI; firm-level data; MNEs;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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