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State equity and outward FDI under the theme of belt and road initiative

Author

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  • Qingtao Wang

    (Southwestern University of Finance and Economics)

  • Bin Liu

    (Xiamen University)

Abstract

State capitalism is attracting burgeoning attention but comes with inconsistent findings toward internationalization. Given its prevalent appearances, the study has investigated the effect of state equity on outward foreign direct investment (OFDI) under the Belt and Road Initiative (BRI), which may constitute a challenge to the international business theory and new hope for companies in emerging economies. Anchoring on the agentic perspective of institutional theory and a sample of Chinese public listed firms, we have unveiled that higher state equity pushes greater proactiveness in investing in those BRI destinations. However, state equity generates stronger pushing effects when the equity source is not from the central government whereas the organizational top managers’ foreign exposures attenuate such pressures. At the institutional level, furthermore, the coastal locale attenuates the effects of such pressures whereas firms are more likely to invest in countries with bilateral investment treaties (BITs) under the BRI theme. Overall, the study should extend our understandings toward the BRI phenomenon and enrich the theoretical knowledge of state capitalism from a political perspective.

Suggested Citation

  • Qingtao Wang & Bin Liu, 2022. "State equity and outward FDI under the theme of belt and road initiative," Asia Pacific Journal of Management, Springer, vol. 39(3), pages 877-897, September.
  • Handle: RePEc:kap:asiapa:v:39:y:2022:i:3:d:10.1007_s10490-020-09716-y
    DOI: 10.1007/s10490-020-09716-y
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    References listed on IDEAS

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    Cited by:

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    2. Jiatao Li & Ari Van Assche & Xiaolan Fu & Lee Li & Gongming Qian, 2022. "The Belt and Road Initiative and international business policy: A kaleidoscopic perspective," Journal of International Business Policy, Palgrave Macmillan, vol. 5(2), pages 135-151, June.
    3. Zhensen Yang & Ying Zhou, 2023. "Beggars Cannot be Choosers? How Experiential and Vicarious Learning Direct Problemistic Search at Firm Internationalization," Management International Review, Springer, vol. 63(6), pages 943-978, December.
    4. Sengupta, Aditi Sarkar & Kleindienst, Ingo & Hutzschenreuter, Thomas, 2023. "Heterogenous internationalization processes of emerging economy MNEs: A review and research agenda," Journal of International Management, Elsevier, vol. 29(3).

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