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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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  • 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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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Oh, Chang Hoon & Travis Selmier, W. & Lien, Donald, 2011. "International trade, foreign direct investment, and transaction costs in languages," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 732-735.
    2. repec:eee:chieco:v:44:y:2017:i:c:p:241-252 is not listed on IDEAS
    3. Lien, Donald, 2013. "Financial effects of the Confucius Institute on Chinese language acquisition: Isn’t it delightful that friends come from afar to teach you Hanyu?," The North American Journal of Economics and Finance, Elsevier, vol. 24(C), pages 87-100.
    4. Tenzer, Helene & Terjesen, Siri & Harzing, Anne-wil, 2017. "Language in international business : A review and agenda for future research," Other publications TiSEM 8afd108a-9666-4fbb-934f-6, Tilburg University, School of Economics and Management.
    5. repec:eee:quaeco:v:64:y:2017:i:c:p:12-21 is not listed on IDEAS
    6. Gilroy B. Michael & Lukas Elmar & Heimann Christian, 2013. "Technologiestandort Deutschland und internationale Wissensspillover / Technology Site Germany and International Knowledge Spillovers: Welchen Einfluss nehmen ausländische MNU auf deutsche Exporte? / W," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 233(5-6), pages 575-599, October.
    7. repec:bla:asiaec:v:31:y:2017:i:3:p:299-323 is not listed on IDEAS
    8. Lien, Donald & Oh, Chang Hoon, 2014. "Determinants of the Confucius Institute establishment," The Quarterly Review of Economics and Finance, Elsevier, vol. 54(3), pages 437-441.
    9. Chensheng Xu & Feng Yao & Fan Zhang, 2015. "An Investigation of Confucius Institute’s Effects on China’s OFDI via Cultural Difference and Institutional Quality," Working Papers 15-45, Department of Economics, West Virginia University.
    10. repec:spr:manint:v:57:y:2017:i:6:d:10.1007_s11575-017-0319-x is not listed on IDEAS
    11. Lien, Donald & Co, Catherine Yap, 2013. "The effect of Confucius Institutes on US Exports to China: A state level analysis," International Review of Economics & Finance, Elsevier, vol. 27(C), pages 566-571.
    12. Li, Jing & Oh, Chang Hoon, 2016. "Research on emerging-market multinational enterprises: Extending Alan Rugman’s critical contributions," International Business Review, Elsevier, vol. 25(3), pages 776-784.
    13. Selmier, W. Travis & Oh, Chang Hoon, 2012. "International business complexity and the internationalization of languages," Business Horizons, Elsevier, vol. 55(2), pages 189-200.

    More about this item

    Keywords

    Confucius Institute; Trade; Foreign Direct Investment; China; Soft power;

    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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