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Confucius Institute, Belt and Road Initiative, and Internationalization

Author

Listed:
  • Hao Wang
  • Yonghui Han
  • Jan Fidrmuc

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Dongming Wei

Abstract

In this paper, we study the role of Confucius Institute in supporting internationalization of Chinese enterprises. Employing a panel dataset containing 66 Belt-Road countries and 75 non Belt-Road countries from 2006 to 2017, we find that Confucius Institute has had a positive effect on Chinese CMA in general and such an effect is stronger in Belt-Road countries, especially after the Belt and Road Initiative was launched in 2013. Our results suggest that the earlier the host country joins the Belt and Road Initiative, the stronger is the interactive effect of CI and Belt and Road Initiative. Moreover, we show that Confucius Classroom, a related program also positively affects the Chinese CMA in the context of Belt and Road Initiative. These findings are robust to controlling for the endogeneity of reverse causality and sample selection bias.

Suggested Citation

  • Hao Wang & Yonghui Han & Jan Fidrmuc & Dongming Wei, 2021. "Confucius Institute, Belt and Road Initiative, and Internationalization," Post-Print hal-03128969, HAL.
  • Handle: RePEc:hal:journl:hal-03128969
    DOI: 10.1016/j.iref.2020.09.011
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-03128969
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    More about this item

    Keywords

    Cultural institute; Institutions : Cultural distance; Belt and Road Initiative; Confucius Institute; Cross-border mergers and acquisitions;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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