2021
DOI: 10.1142/s0217590821500594
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Outward Foreign Direct Investment of China’s Banking Sector: Determinants and Motivations

Abstract: The outward foreign direct investment (OFDI) is vital for the sustainable development of China’s banking sector. This paper examines the location determinants of OFDI by China’s banks during 2003–2015 with a set of negative binomial panel regression models. We show that the OFDI for China’s banking sector generally exhibits market-seeking, resource-seeking and efficiency-seeking motivations. The efficiency-seeking motivation is mostly through the incentive to avert credit risk. The OFDI also tends to flow to e… Show more

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Cited by 2 publications
(2 citation statements)
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“…This means that the DIGE may have a certain lag effect while affecting HQED. Therefore, this paper adopts dynamic analysis (here, dynamic analysis means that the core explanatory variable of the DIGE lags behind for several periods, and so we examine the impact of the current DIGE on HQED in the next few periods) to test the lag effect of the DIGE on HQED [43]. Table 4's models ( 5) through (7) demonstrate that, with an estimated coefficient of 0.085, the DIGE has the biggest impact on the advancement of HQED in the current period.…”
Section: Dynamic Effect Analysismentioning
confidence: 99%
“…This means that the DIGE may have a certain lag effect while affecting HQED. Therefore, this paper adopts dynamic analysis (here, dynamic analysis means that the core explanatory variable of the DIGE lags behind for several periods, and so we examine the impact of the current DIGE on HQED in the next few periods) to test the lag effect of the DIGE on HQED [43]. Table 4's models ( 5) through (7) demonstrate that, with an estimated coefficient of 0.085, the DIGE has the biggest impact on the advancement of HQED in the current period.…”
Section: Dynamic Effect Analysismentioning
confidence: 99%
“…Economic activities are easily affected by various social factors, such as monetary policies (Balke et al, 2017;Zhang, 2019;An et al, 2021), credit shocks (Balke et al, 2021), and major public events like COVID-19 pandemic (Shang et al, 2021;Zhao Y. H. et al, 2021). The global economy encountered a serious recession in the second quarter of 2020.…”
Section: Overview Of the Effect Of Covid-19 On Economic And Mental He...mentioning
confidence: 99%