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Confucius institute effects on China's trade and FDI: Isn't it delightful when folks afar study Hanyu?

Author Info

  • 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.

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Article provided by Elsevier in its journal International Review of Economics & Finance.

Volume (Year): 21 (2012)
Issue (Month): 1 ()
Pages: 147-155

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Handle: RePEc:eee:reveco:v:21:y:2012:i:1:p:147-155
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620165

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

Find related papers by 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

References listed on IDEAS
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Cited by:

  1. 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.
  2. 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.
  3. Selmier, W. Travis & Oh, Chang Hoon, 2012. "International business complexity and the internationalization of languages," Business Horizons, Elsevier, vol. 55(2), pages 189-200.
  4. 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.
  5. 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.
  6. 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.
  7. B. Michael Gilroy & Elmar Lukas & Christian Heimann, 2013. "Technologiestandort Deutschland und internationale Wissensspillover, Welchen Einfluss nehmen auslaendische MNU auf deutsche Exporte?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 233(5-6), pages 575-599, October.

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