Location choice of Chinese outward FDI – An ethnicity-based population ecology perspective

Zhu, Hua; Cantwell, John; Jia, Fei; Wang, Chengqi

doi:10.1016/j.intman.2022.100983

Cited by 5 publications

(2 citation statements)

References 73 publications

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“…North America and Western and Northern Europe accounted for 24% and 37%, respectively of Indian OFDI, followed by Asia at 21%, and Africa at 6%. Despite the growing importance of the Indian economy and its OFDI, India's OFDI flows remain relatively understudied in the literature (Zhu et al, 2022a(Zhu et al, , 2022b, further supporting our choice of country.…”

Section: Empirical Contextmentioning

confidence: 99%

Location choice and Indian outward foreign direct investment: institutional thresholds and differentiating between institutional quality and institutional distance

Nayyar,

Luiz

2023

Journal of Institutional Economics

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Institutions matter as regards foreign location investment decisions, but how they matter and in what ways, is still unsettled. We differentiate between absolute and relative institutional effects on both location choice and on the size of the FDI and do so by examining India's outward FDI flows between 2008 and 2020. We find that absolute and relative institutional measures have different effects, and these are noticeable at different stages. We show that the quality of institutions affects location choice, but once they have made that decision then the scale of the investment is impacted by institutional threshold effects and institutional distance, and we explain why this could be the case. We provide further nuance to studies on the asymmetrical effects of institutions on outward FDI. We provide empirical evidence that the effects of absolute institutions matter more where host countries lie at the lower end of the institutional profile distribution. Likewise with institutional distance—it might not be the direction of the difference that matters so much as where the host country is located along the institutional profile distribution. This has substantial consequences from both a managerial and a policy perspective.

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Section: Empirical Contextmentioning

confidence: 99%

Location choice and Indian outward foreign direct investment: institutional thresholds and differentiating between institutional quality and institutional distance

Nayyar,

Luiz

2023

Journal of Institutional Economics

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show abstract

“… Government size: The government has a tangible influence on economic development, and larger government size equates to heightened economic intervention capabilities. Local governing bodies frequently implement fiscal subsidies or tax incentives to shape FDI preferences (Zhu & Gu, 2018) [ 49 ]. Therefore, government size is used as a control variable, and it is represented referencing Afonso and Furceri (2010) and Li et al (2010), using the ratio of total government expenditure to regional GDP [ 50 , 51 ].…”

Section: Model and Variablesmentioning

confidence: 99%

The spatial spillover effects of establishing free trade pilot zones on FDI: Empirical evidence from China

Zhang,

Wang

2023

Heliyon

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The Role of Inward FDI and Family Firm Heterogeneity on Foreign Location Choice: Evidence from India

Mondal,

Lahiri

2024

Manag Int Rev

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Location choice of Chinese outward FDI – An ethnicity-based population ecology perspective

Cited by 5 publications

References 73 publications

Location choice and Indian outward foreign direct investment: institutional thresholds and differentiating between institutional quality and institutional distance

Location choice and Indian outward foreign direct investment: institutional thresholds and differentiating between institutional quality and institutional distance

The spatial spillover effects of establishing free trade pilot zones on FDI: Empirical evidence from China

The Role of Inward FDI and Family Firm Heterogeneity on Foreign Location Choice: Evidence from India

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