Belt and road initiative and Chinese firms' outward foreign direct investment

By Shu Yu, Xingwang Qian, Taoxiong Liu. Emerging Markets Review, 2019

158 citations recorded by the source corpus.

This paper studies the impact of China’s “Belt and Road Initiative” (BRI) on Chinese firms’ outward foreign direct investment (OFDI). Overall, the BRI positively impacts on Chinese OFDI activities. However, both the direction and the magnitude of this impact depend on the host countries’ willingness to participate in the BRI. The BRI promotes more OFDI to developing countries that welcome China’s economic engagement and alters the effect of Chinese domestic push factors on its OFDI patterns. In addition, Chinese firms in construction and infrastructure, manufacturing, and trade-related sectors are more responsive to the BRI than firms in other sectors.

Subfields: Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/9ae56b456e5cd451e7cec5fbbc3b114b4e59c822