Location Choices of Chinese Multinationals in Europe: The Role of Overseas Communities

Karreman, Bas; Burger, Martijn; Oort, Frank van

doi:10.2139/ssrn.2845797

Cited by 14 publications

(29 citation statements)

References 96 publications

(114 reference statements)

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“…Several studies point at the special role of highly skilled migrants, relative to low skilled ones, when it comes to orienting FDIs towards their countries of origin (Javorcik et al, 2011;Leblang, 2010). Others find evidence for FDIs going from the migrants' countries of origin to specific locations in the countries of destination, in particular those hosting the largest migrant communities (Hernandez, 2014;Karreman, Burger, & van Oort, 2017;Shukla & Cantwell, 2018).…”

Section: Migrant Inventors: Cross-border Network and International Ementioning

confidence: 99%

Highly skilled and well connected: Migrant inventors in cross-border M&As

2019

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Based on a relational view of international business, we investigate the role of migrant inventors in Cross-Border Merger & Acquisitions (CBM&As) undertaken by R&D-active firms. We hypothesize that the migrant inventors' international social networks can be leveraged upon by their employers in order to spot and/or integrate the knowledge bases of acquisition targets in the inventors' home country. We nuance our hypothesis by means of several conditional logistic regressions on a large matched sample of deals and control cases. The impact of migrant inventors increases with the distance between countries and for targets located in countries with weak administrative/legal systems, as well as when targets are either innovative or belong to high-tech sectors or to the same sector as the acquirer, and for full versus partial acquisitions.

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Section: Migrant Inventors: Cross-border Network and International Ementioning

confidence: 99%

Highly skilled and well connected: Migrant inventors in cross-border M&As

2019

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“…In this direction, other studies can be cited. Karreman, Burger and Oort (2016) used fDi Markets (2003-2010, from the Financial Times, and the European Investment Monitor (2003Monitor ( -2009, from EY consultancy, as data sources to analyse the location choices of Chinese multinationals in Europe. Both sources contain information on greenfield investment projects announced in the media by companies, financial information providers, etc.…”

Section: Multinational Companies From Developing Countries Investing mentioning

confidence: 99%

“…Developing countries were initially the preferred recipients of foreign investments, even though Chinese state-owned enterprises have acquired shares of companies in developed countries, such as the USA and European Union countries (Karreman, Burger and Oort 2016). Since 2010, foreign direct investment (FDI) by Chinese companies in South American countries has increased considerably.…”

Section: Introductionmentioning

confidence: 99%

The Amazon and the Internationalisation of Chinese Companies

Wegner

Fernandes

2018

Contexto int.

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The objective of this article is to analyse the announced and ongoing foreign direct investment of companies from China in the Amazon region, mainly in Brazil, which covers most of the region, and Peru. We will also to a certain extent include the Amazon region that crosses Colombia and Ecuador. These countries constitute one of the centres of South American integration due to their infrastructure, and the construction of a highway linking Peru and Brazil to the Pacific has been planned. Segments such as mining, petroleum and grains have been the target for the productive internationalisation of Chinese companies. In the analysed countries, the volume of announced and ongoing direct investment of Chinese companies is indeed significant, targeting the above-mentioned natural resource industries. The large infrastructure project announced will be a logistical support for the companies that announced investments in the Amazon, especially between Brazil and Peru. Even though these countries and the other five that share the Amazon rainforest have presented some proposals of co-operation, they have not developed a common approach for the reception of investments from Chinese companies.

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“…Recent research within relational economic geography, however, has demonstrated that factors within host countries such as the presence of overseas Chinese communities are also important in facilitating OFDI. Ethnicity‐based networks act as nodes of knowledge and information exchange, assisting Chinese MNCs to reduce communication barriers and obtain local knowledge (Deng et al., 2020; Hamzah, 2020; Karreman et al., 2017; Liang et al., 2019). Their presence, especially in new overseas markets, may be particularly important to helping PEs and smaller SOEs gain footholds.…”

Section: Introductionmentioning

confidence: 99%

The rise of Chinese foreign direct investment in the United States: Disentangling investment strategies of state‐owned and private enterprises

Jiang

Bennett

2020

Growth and Change

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Over the last two decades, China's outward foreign direct investment (OFDI) has expanded rapidly. The country is now the world's second-largest source of OFDI. China is often viewed as a monolithic investor, however, without sufficient attention to the differences between investments by state-owned enterprises (SOEs) and private enterprises (PEs). To shed light on the internal complexity and heterogeneity of Chinese OFDI, we construct a panel dataset of investments in the U.S. across the 50 states and Washington, D.C. from 2005 to 2017, which we analyze using a spatial autoregressive model. We find clear evidence that the ownership structure of Chinese firms affects investment strategy and entry mode. Statistical analysis indicates that SOEs are more likely to pursue greenfield investment motivated by market-seeking and resource-seeking objectives, while PEs pursue mergers and acquisitions in order to obtain strategic assets. We also detect a positive and significant relationship between the presence of Chinese overseas communities and OFDI, with the strength of the correlation depending on ownership structure. Finally, we find that Chinese OFDI is spatially dependent, meaning that investments flow to states where they are already concentrated nearby. | 1563 HE Et al. 1 | INTRODUCTION Globally, outward foreign direct investment (OFDI) from emerging economies is rising, and China's multinational enterprises (MNEs) are playing a key part in this expansion (Alon et al., 2018). Since the early 2000s, driven by the Chinese state's "Go Global" policy, Chinese OFDI has reshaped the global economic landscape (Buckley, 2019; Lee, 2018). In 2018, the total value of OFDI from China reached US$143 billion, making the country the world's second-largest source of FDI (World Bank, 2020). Chinese OFDI initially expanded in the late 1990s as state-owned enterprises (SOEs), with their ample domestic strategic assets and support of the government, began looking abroad to invest (Gaur et al., 2018). In contrast to profit-seeking MNEs headquartered in advanced market economies, Chinese MNEs tend to be more state-directed or at the very least state-influenced. With substantial government backing, SOEs have historically dominated Chinese OFDI (Buckley, 2019; Deng, 2007). State support has allowed many Chinese MNEs to address ownership-specific disadvantages and engage in investment activities in environments that private firms might consider too politically risky (Buckley, 2019; Lu et al., 2018; Ramasamy et al., 2012). Yet, in recent years, Chinese OFDI has shifted from government-driven investment by central SOEs to more market-driven investment by private enterprises (PEs) (Li & Hendrischke, 2019). As Chinese firms, particularly privately owned ones, seek to expand abroad, they may turn to other sources of assistance apart from the Chinese government. Historically, by offering various forms of support, backing, and guarantees, Beijing has helped internationalizing Chinese firms to overcome obstacles in host countries such as informat...

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Location Choices of Chinese Multinationals in Europe: The Role of Overseas Communities

Cited by 14 publications

References 96 publications

Highly skilled and well connected: Migrant inventors in cross-border M&As

Highly skilled and well connected: Migrant inventors in cross-border M&As

The Amazon and the Internationalisation of Chinese Companies

The rise of Chinese foreign direct investment in the United States: Disentangling investment strategies of state‐owned and private enterprises

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