Has outward foreign direct investment contributed to the development of the Chinese economy?

Knoerich, Jan

doi:10.18356/898d556e-en

Cited by 10 publications

(7 citation statements)

References 20 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…To do so, domestic firms may need to open up senior managerial positions to employees from abroad; this may not always be easy (Allen et al, 2018;Whitley, 2012). Consequently, policymakers, if they implement HCMs to improve domestic firms' competitiveness, will have to assess how well HCMs actually enable those firms to create new capabilities or extend existing ones rather than simply whether or not firms use HCMs (Knoerich, 2015). In short, encouraging domestic firms to invest abroad may be one thing; ensuring that they use that investment to boost their competitiveness another.…”

Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

Home-country measures to support outward foreign direct investment: variation and consequences

Becker-Ritterspach¹,

Allen²,

Lange³

et al. 2019

Transnational Corporations

View full text Add to dashboard Cite

The state, especially in emerging economies, plays a key role in influencing firm behaviour, including outward foreign direct investment (OFDI). Often literature on the state's influence on OFDI stresses direct state ownership. However, the state can influence OFDI in several ways, including policy support and subsidies; the literature has largely overlooked these effects. We build on key insights from the comparative capitalisms literature to put forward a series of propositions on how home-country measures-in both emerging and developed economies-to boost OFDI will influence, inter alia, the volume, location and mode of firms' investments abroad. We thus contribute to the literature by showing how government policies across a wide range of countries influence an important aspect of firm behaviour that has economic, social and environmental implications.

show abstract

Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

Home-country measures to support outward foreign direct investment: variation and consequences

Becker-Ritterspach¹,

Allen²,

Lange³

et al. 2019

Transnational Corporations

View full text Add to dashboard Cite

show abstract

“…Recently, a few studies have focused on Chinese outward FDI. Knoerich (2017), who investigates whether Chinese outward FDI has made a contribution to the development of the Chinese economy, finds that in fact, activities of Chinese enterprises in pursuing assets and advantages abroad yield capability, capacity and macroeconomic returns to the mainland economy. The author finds that these are specifically related to areas of challenges that China has faced.…”

Section: Introductionmentioning

confidence: 99%

Who Gains from Services FDI—Host or Home Economies? An Analysis of Disaggregated Services FDI Inflows and Outflows of 24 European Economies

Doytch

2021

Foreign Trade Review

View full text Add to dashboard Cite

This study focuses on a sample of 24 European economies to examine the spillovers from disaggregated services foreign direct investment (FDI) on economic growth. We study the impact of 20 disaggregated services FDI inflows and outflows, respectively, on their host and home country services sector and overall growth. We find that both financial services and business services FDI are beneficial for growth in both host and home countries. Financial services FDI works though financial holding companies and home countries benefit especially from investment in foreign banks, which provides access to credit. Business services FDI works though management holding companies and home countries benefit, especially from investment in computer activities, which provides access to specialised human capital and high-value knowledge assets. The positive spillovers to home countries provide evidence for arguing against protectionism. JEL Codes: F2, F21, F43

show abstract

“…The conventional wisdom was that outward FDI is driven by the exploitation of some competitive advantage by the investor, which is more typical of Northern MNEs. However, outward FDI can also be motivated by overcoming an existing disadvantage (e.g., the absence of skilled labor, being located in a small market), which may be more typical of MNEs from less developed countries (Knoerich 2016). Indeed, FDI originating in less developed countries is increasing rapidly (Gammeltoft 2008), and outward FDI is growing faster among poorer countries during the last several decades (Knoerich 2017; UNCTAD 2019b).…”

Section: Foreign Capital and Economic Growthmentioning

confidence: 99%

Foreign Capital and Economic Growth: A Social Network Analysis, 2001–2017

Clark

Kentor

2021

Sociological Perspectives

View full text Add to dashboard Cite

Foreign direct investment (FDI) holds a substantial and rapidly growing presence across every region of the world. However, our understanding of how foreign capital impacts economic growth in receiving and investing countries remains in question, despite nearly five decades of research. Our study contributes to this long-standing debate by (1) applying social network analysis to the FDI-growth literature, (2) utilizing recently available bilateral data for a global sample of countries during the post-2000 period, and (3) examining the impact of both inward and outward foreign capital on economic growth. While conventional measures of FDI typically focus on investment volume, we argue that the network structure of investment relations may be equally—or more—important. We construct a global network of FDI during the 2001–2017 period, bringing together two data sets: (1) the United Nations Conference on Trade and Development’s Bilateral FDI Statistics, and (2) the International Monetary Fund’s Coordinated Direct Investment Survey. We then calculate network centrality scores that reflect each country’s level of inward and outward embeddedness in the global FDI network. Drawing from a sample of 1,467 observations across 137 countries during the 2001–2017 period, we estimate two-way fixed effects models to examine the effect of FDI centrality on economic growth. Net of other predictors, we find that inward and outward centrality are positively—and independently—associated with growth, while more conventional measures of foreign capital display weaker and inconsistent effects.

show abstract

Has outward foreign direct investment contributed to the development of the Chinese economy?

Cited by 10 publications

References 20 publications

Home-country measures to support outward foreign direct investment: variation and consequences

Home-country measures to support outward foreign direct investment: variation and consequences

Who Gains from Services FDI—Host or Home Economies? An Analysis of Disaggregated Services FDI Inflows and Outflows of 24 European Economies

Foreign Capital and Economic Growth: A Social Network Analysis, 2001–2017

Contact Info

Product

Resources

About