IDEAS home Printed from https://ideas.repec.org/a/sae/emeeco/v15y2023i2p289-305.html
   My bibliography  Save this article

Analyzing the Influence of BRI Foreign Direct Investment on Governance: Perspective from Southeast Asian Countries

Author

Listed:
  • Qian Liu
  • Yingying Wang
  • Ning Kang

Abstract

Promoting international economic cooperation plays a vital role in improving global governance. International cooperation benefits participating countries economically, and positively impacts their social development and national governance. Based on the micro survey data of eight Southeast Asian countries, this article analyzes the influence mechanism of the Belt and Road outward foreign direct investment (FDI) on the governance of the host countries. The article finds that China’s outward FDI, through its positive role in the host country’s economic and social development, leads to a positive perception among people in host countries regarding China’s influence locally. On the one hand, it enhances people’s sense of identity with China’s development. On the other hand, it contributes to people’s satisfaction with their local government, thereby improving national governance. The findings of this article offer theoretical insights for promoting high-level opening-up. When participating in global governance, one must pay attention to the real sense of gain in the host countries and their people, improve the governance and promote high-quality development of regional economic cooperation.

Suggested Citation

  • Qian Liu & Yingying Wang & Ning Kang, 2023. "Analyzing the Influence of BRI Foreign Direct Investment on Governance: Perspective from Southeast Asian Countries," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 15(2), pages 289-305, May.
    • Handle: RePEc:sae:emeeco:v:15:y:2023:i:2:p:289-305
    DOI: 10.1177/09749101231167450
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/09749101231167450
    Download Restriction: no
    File URL: https://libkey.io/10.1177/09749101231167450?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Andrew K. Rose, 2016. "Like Me, Buy Me: The Effect of Soft Power on Exports," Economics and Politics, Wiley Blackwell, vol. 28(2), pages 216-232, July.
    2. Fathi Ali & Norbert Fiess & Ronald Macdonald, 2011. "Climbing To The Top? Foreign Direct Investment And Property Rights," Economic Inquiry, Western Economic Association International, vol. 49(1), pages 289-302, January.
    3. Stefan Drews & Jeroen C.J.M. van den Bergh, 2016. "What explains public support for climate policies? A review of empirical and experimental studies," Climate Policy, Taylor & Francis Journals, vol. 16(7), pages 855-876, October.
    4. Canes-Wrone, Brandice & Brady, David W. & Cogan, John F., 2002. "Out of Step, Out of Office: Electoral Accountability and House Members' Voting," American Political Science Review, Cambridge University Press, vol. 96(1), pages 127-140, March.
    5. Page, Benjamin I. & Shapiro, Robert Y., 1983. "Effects of Public Opinion on Policy," American Political Science Review, Cambridge University Press, vol. 77(1), pages 175-190, March.
    6. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2009. "Cultural Biases in Economic Exchange?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(3), pages 1095-1131.
    7. Helen V. Milner & Dustin Tingley, 2013. "Public Opinion and Foreign Aid: A Review Essay," International Interactions, Taylor & Francis Journals, vol. 39(3), pages 389-401, July.
    8. Feng Sun, 2014. "The dual political effect of foreign direct investment in developing countries," Journal of Developing Areas, Tennessee State University, College of Business, vol. 48(1), pages 107-125, January-M.
    9. Li, Xiaojun & Zeng, Ka, 2017. "Individual Preferences for FDI in Developing Countries: Experimental Evidence from China," Journal of Experimental Political Science, Cambridge University Press, vol. 4(3), pages 195-205, December.
    10. Sonal S. Pandya & Rajkumar Venkatesan, 2016. "French Roast: Consumer Response to International Con flict--Evidence from Supermarket Scanner Data," The Review of Economics and Statistics, MIT Press, vol. 98(1), pages 42-56, March.
    11. Abramson, Scott F. & Montero, Sergio, 2020. "Learning about Growth and Democracy," American Political Science Review, Cambridge University Press, vol. 114(4), pages 1195-1212, November.
    12. Fearon, James D., 1994. "Domestic Political Audiences and the Escalation of International Disputes," American Political Science Review, Cambridge University Press, vol. 88(3), pages 577-592, September.
    13. Du, Julan & Zhang, Yifei, 2018. "Does One Belt One Road initiative promote Chinese overseas direct investment?," China Economic Review, Elsevier, vol. 47(C), pages 189-205.
    14. Goldsmith, Benjamin E. & Horiuchi, Yusaku & Wood, Terence, 2014. "Doing Well by Doing Good: The Impact of Foreign Aid on Foreign Public Opinion," Quarterly Journal of Political Science, now publishers, vol. 9(1), pages 87-114, March.
    15. Heilmann, Kilian, 2016. "Does political conflict hurt trade? Evidence from consumer boycotts," Journal of International Economics, Elsevier, vol. 99(C), pages 179-191.
    16. Chunyang Pan & William X. Wei & Etayankara Muralidharan & Jia Liao & Bernadette Andreosso-O’Callaghan, 2020. "Does China’s Outward Direct Investment Improve the Institutional Quality of the Belt and Road Countries?," Sustainability, MDPI, vol. 12(1), pages 1-21, January.
    17. Hurwitz, Jon & Peffley, Mark, 1987. "How are Foreign Policy Attitudes Structured? A Hierarchical Model," American Political Science Review, Cambridge University Press, vol. 81(4), pages 1099-1120, December.
    18. Li, Quan & Reuveny, Rafael, 2003. "Economic Globalization and Democracy: An Empirical Analysis," British Journal of Political Science, Cambridge University Press, vol. 33(1), pages 29-54, January.
    19. Tomz, Michael, 2007. "Domestic Audience Costs in International Relations: An Experimental Approach," International Organization, Cambridge University Press, vol. 61(4), pages 821-840, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eichenauer, Vera Z. & Fuchs, Andreas & Brueckner, Lutz, 2018. "The Effects of Trade, Aid, and Investment on China's Image in Developing Countries," Working Papers 0646, University of Heidelberg, Department of Economics.
    2. Lukas Wellner & Axel Dreher & Andreas Fuchs & Bradley C. Parks & Austin M. Strange, 2022. "Can Aid Buy Foreign Public Support? Evidence from Chinese Development Finance," CESifo Working Paper Series 9646, CESifo.
    3. Eichenauer, Vera Z. & Fuchs, Andreas & Brückner, Lutz, 2021. "The effects of trade, aid, and investment on China's image in Latin America," Journal of Comparative Economics, Elsevier, vol. 49(2), pages 483-498.
    4. David H. Bearce & Thomas R. Cook, 2018. "The first image reversed: IGO signals and mass political attitudes," The Review of International Organizations, Springer, vol. 13(4), pages 595-619, December.
    5. Pao-Li Chang & Tomoki Fujii & Wei Jin, 2022. "Good Names Beget Favors: The Impact of Country Image on Trade Flows and Welfare," Management Science, INFORMS, vol. 68(10), pages 7555-7596, October.
    6. Jianhong Qi & Kam Ki Tang & Da Yin & Yong Zhao, 2020. "Remaking China’s Global Image with the Belt and Road Initiative: Is the Jury Out?," Discussion Papers Series 635, School of Economics, University of Queensland, Australia.
    7. (ed.), 0. "Research Handbook on Economic Diplomacy," Books, Edward Elgar Publishing, number 16053.
    8. Grivas Chiyaba & Carl Singleton, 2022. "Do natural resources and FDI tend to erode or support the development of national institutions?," Economics Discussion Papers em-dp2022-02, Department of Economics, University of Reading, revised 30 May 2023.
    9. Rudolph, Lukas & Freitag, Markus & Thurner, Paul, 2021. "The Comparative Legitimacy of Arms Exports - A Conjoint Experiment in Germany and France," SocArXiv r73pv, Center for Open Science.
    10. Linda Alvarez & Constantine Boussalis & Jennifer L. Merolla & Caryn A. Peiffer, 2018. "Love thy neighbour: Social identity and public support for humanitarian aid," Development Policy Review, Overseas Development Institute, vol. 36(S2), pages 935-953, September.
    11. Niklas Harring & Sverker C. Jagers & Simon Matti, 2017. "Public Support for Pro-Environmental Policy Measures: Examining the Impact of Personal Values and Ideology," Sustainability, MDPI, vol. 9(5), pages 1-14, April.
    12. Okara, Assi, 2023. "Does foreign direct investment promote political stability? Evidence from developing economies," Economic Modelling, Elsevier, vol. 123(C).
    13. Eunju Kim & KyungWoo Kim, 2022. "Public perception of foreign aid in South Korea: The effects of policy efficacy in an emerging donor," Development Policy Review, Overseas Development Institute, vol. 40(3), May.
    14. Christopher Gelpi, 2017. "Democracies in Conflict," Journal of Conflict Resolution, Peace Science Society (International), vol. 61(9), pages 1925-1949, October.
    15. Ahn, JaeBin & Greaney, Theresa M. & Kiyota, Kozo, 2022. "Political conflict and angry consumers: Evaluating the regional impacts of a consumer boycott on travel services trade," Journal of the Japanese and International Economies, Elsevier, vol. 65(C).
    16. Rana, Arslan Tariq & Kebewar, Mazen, 2014. "The Political Economy of FDI flows into Developing Countries: Does the depth of International Trade Agreements Matter?," EconStor Preprints 91501, ZBW - Leibniz Information Centre for Economics.
    17. Zhiming Cheng & Russell Smyth, 2016. "Why Give it Away When You Need it Yourself? Understanding Public Support for Foreign Aid in China," Journal of Development Studies, Taylor & Francis Journals, vol. 52(1), pages 53-71, January.
    18. Sander, Harald & Kleimeier, Stefanie & Heuchemer, Sylvia, 2016. "The resurgence of cultural borders during the financial crisis: The changing geography of Eurozone cross-border depositing," Journal of Financial Stability, Elsevier, vol. 24(C), pages 12-26.
    19. Matthieu Crozet & Julian Hinz, 2020. "Friendly fire: the trade impact of the Russia sanctions and counter-sanctions," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 35(101), pages 97-146.
    20. Xiaojun Li & Dingding Chen, 2021. "Public opinion, international reputation, and audience costs in an authoritarian regime," Conflict Management and Peace Science, Peace Science Society (International), vol. 38(5), pages 543-560, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:emeeco:v:15:y:2023:i:2:p:289-305. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.emergingmarketsforum.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.