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Do Chinese state-owned and private enterprises differ in their internationalization strategies?

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  • Amighini, Alessia A.
  • Rabellotti, Roberta
  • Sanfilippo, Marco

Abstract

We empirically analyze the host-country determinants of Chinese outward direct investments (ODI) in the period from 2003 to 2008, using disaggregated data by country and sector and distinguishing between state-owned or controlled 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 or controlled 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.

Suggested Citation

  • Amighini, Alessia A. & Rabellotti, Roberta & Sanfilippo, Marco, 2013. "Do Chinese state-owned and private enterprises differ in their internationalization strategies?," China Economic Review, Elsevier, vol. 27(C), pages 312-325.
  • Handle: RePEc:eee:chieco:v:27:y:2013:i:c:p:312-325
    DOI: 10.1016/j.chieco.2013.02.003
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    References listed on IDEAS

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    Keywords

    China; Foreign direct investment; Internationalization; Corporate ownership;

    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

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