China's outward foreign direct investment: Location choice and firm ownership

By Bala Ramasamy, Matthew C. H. Yeung, S. Laforet. 2012

788 citations recorded by the source corpus.

Abstract This article evaluates the international location decisions made by public listed Chinese firms during the period 2006–2008, using a Poisson count data regression model. Further, we categorize the firms into state-controlled and privately owned according to majority ownership. We find that the determinants of internationalization differ based on ownership. State-controlled firms are attracted to countries with large sources of natural resources and risky political environments. Private firms are more market seekers. Although all firms have strategic intent, the attraction is commercially viable technology rather than core research content. Our findings also show that existing theories can sufficiently explain the actions of private Chinese firms, but adjustments are needed to understand the behavior of state-controlled multinationals.

Subfields: Accounting, Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/5ed715a78de3c66cf3a5eabe1ad4fa54370f91b0

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Citations in the corpus

The Location Choice of Foreign Direct Investments: Empirical Evidence and Methodological Challenges (2017, background): “Flow data show how MNE investments into a given location in a given time span changes, typically captured by the entry of firms or perhaps a change in number of firms from year to year (e.g., Ramasamy et al., 2012).”
Chinese Outward Direct Investment Research: Theoretical Integration and Recommendations (2013, neutral): “…Duanmu (2012); Kang and Jiang (2012); Klossek et al. (2012); Kolstad and VViig (2012); Liang et al. (2012); Liu et al. (2011); Luo et al. (2010); Ramasamy et al. (2012); Rui and Yip (2008); Sun et al. (2012); Zhou (2007) Asia Pacific Journal of Management (7): Cardoza and Fornes (2011); Chen…”
The Institutional Influence on the Location Strategies of Multinational Enterprises from Emerging Economies: Evidence from China's Cross-border Mergers and Acquisitions (2016, neutral): “Therefore, more work, taking into account the specific attributes of emerging economies, is called for (Cheng, 2014; Cuervo-Cazurra, Inkpen, Musacchio, & Ramaswamy, 2014; Cui & Jiang, 2010; Morck, Yeung, & Zhou, 2008; Ramaswamy et al., 2012; Wang, Hong, Kafouros & Boateng, 2012).”
Extending Dunning's Investment Development Path: The role of home country institutional determinants in explaining outward foreign direct investment (2013, background): “We follow Ramasamy, Yeung, and Laforet (2012) and Buckley et al. (2007) according to whom, rather than rejecting conventional theories, specific modifications are needed to explain OFDI from emerging economies.”
A review of research on outward foreign direct investment from emerging countries, including China: what do we know, how do we know and where should we be heading? (2018, background): “On the other hand, Ramasamy, Yeung, and Laforet (2012) demonstrated that firms have distinct determinants of internationalization, which depend on ownership.”
Political risk, cultural distance, and outward foreign direct investment: Empirical evidence from large Chinese firms (2012, background): “Some papers even report that Chinese multinationals tend to invest in countries with higher levels of risk (Bunyaratavej H Kang & Jiang, 2011; Malhotra & Zhu, 2009; Ramasamy, Yeung, & Laforet, 2011 ).”
Home country institutions and the internationalization of state owned enterprises: A cross-country analysis (2016, background): “Recent scholarly interest has been stimulated by the surge of Chinese SOEs becoming major international players in some industries (Chen & Young, 2010; Cui & Jiang, 2012; Morck et al., 2008; Ramasamy et al., 2012; Wang et al., 2012b; c).”
Overcoming distrust: How state-owned enterprises adapt their foreign entries to institutional pressures abroad (2014, background): “investment in countries perceived to be hostile; there is some evidence that Chinese SO MNEs indeed invest more in less advanced economies, while private firms focus more in Europe and North America (Ramasamy et al., 2012).”