Do Chinese SOEs and private companies differ in their foreign location strategies?
AbstractWe empirically analyze the host-country determinants of Chinese outbound foreign direct investments (ODI) in the period from 2003 to 2008, using disaggregated data by country and sector and distinguishing between State-owned 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 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 InfoPaper provided by European University Institute in its series RSCAS Working Papers with number 2012/27.
Date of creation: 18 Jun 2012
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China; Foreign Direct Investment; Internationalization; Corporate Ownership; F14; F21;
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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-14 (All new papers)
- NEP-CSE-2012-07-14 (Economics of Strategic Management)
- NEP-TRA-2012-07-14 (Transition Economics)
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- Christian Milelli & Alice Sindzingre, 2013. "Chinese Outward Foreign Direct Investment in Developed and Developing Countries: Converging Characteristics?," EconomiX Working Papers 2013-34, University of Paris West - Nanterre la Défense, EconomiX.
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