IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6239-602-9_36.html

The Impact of Global Supply Chain Restructuring on Foreign Investment Decisions in China’s Logistics and Manufacturing Industries

In: Proceedings of the 2025 7th International Conference on Economic Management and Model Engineering (ICEMME 2025)

Author

Listed:
  • Keyi Wang

    (University of Wollongong)

  • Yanwen Wen

    (University of Wollongong)

Abstract

This article focuses on the internal driving factors and mechanism of action of foreign-funded enterprises’ investment decisions in China’s logistics and manufacturing industries under the background of global supply chain reorganization. To investigate the impact of supply chain restructuring on foreign direct investment (FDI) decisions amid global supply chain realignment, this study employs multiple regression analysis to construct baseline and interaction models using 113,097 observations from the Kaggle supply chain dataset (covering 94 countries). Results indicate that supply chain diversification exerts a significant negative impact on FDI, with coefficients ranging from -542.93 to -560.82; Geopolitical risk exhibits a significant positive correlation with FDI, with coefficients ranging from 96.63 to 106.48; the impact of supply chain restructuring on FDI depends on the risk environment, with an interaction coefficient of -37.44 with geopolitical risk, indicating that high risk amplifies the negative effects of restructuring; the Logistics Performance Index has a significantly negative impact on FDI, contrary to expectations. The model exhibits good fit, with an R2 of 0.634 for the interaction model. This study reveals the conditional mechanism through which supply chain restructuring influences foreign investment, providing empirical evidence and differentiated recommendations for policymakers to optimize supply chain policies and for enterprises to formulate supply chain strategies and investment decisions.

Suggested Citation

  • Keyi Wang & Yanwen Wen, 2026. "The Impact of Global Supply Chain Restructuring on Foreign Investment Decisions in China’s Logistics and Manufacturing Industries," Advances in Economics, Business and Management Research, in: Touria Benazzouz & Sandeep Saxena & Hui Nee Au Yong & Nor Zafir Md Salleh (ed.), Proceedings of the 2025 7th International Conference on Economic Management and Model Engineering (ICEMME 2025), pages 391-406, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6239-602-9_36
    DOI: 10.2991/978-94-6239-602-9_36
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:spr:advbcp:978-94-6239-602-9_36. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.