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The distinct contribution of investment promotion agencies’ branch offices in bringing Chinese multinationals to Europe

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  • Knoerich, Jan
  • Vitting, Simon

Abstract

This study uncovers the distinct contribution of investment promotion agencies’ (IPAs) overseas branch offices in advancing and even creating foreign direct investment. It offers a novel categorisation of IPAs depending on location and headquarter/branch status, and conceptually connects the known functions of IPAs with the advantages set out by the OLI paradigm. Empirical examination of longitudinal data from 29 European IPAs finds that the activities of their branches in China instilled greater awareness and confidence in Chinese multinational enterprises about their ownership- and European location-specific advantages. This contribution of IPA branches is especially salient in emerging economies with newcomer investors.

Suggested Citation

  • Knoerich, Jan & Vitting, Simon, 2021. "The distinct contribution of investment promotion agencies’ branch offices in bringing Chinese multinationals to Europe," Journal of World Business, Elsevier, vol. 56(3).
  • Handle: RePEc:eee:worbus:v:56:y:2021:i:3:s1090951620301152
    DOI: 10.1016/j.jwb.2020.101187
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