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This dissertation elucidates the domestic politics of China's outward direct investments and its international implications. A current puzzle in CPE/IPE research is whether international investors from autocracies, particularly state-owned enterprises (SOEs), are profit- maximizing firms or agents of the state. Using formal analysis and two sets of original firm-level data on Chinese investments, I demonstrate that the behaviors of China's SOEs reflect both state preferences and firms' profit incentives and that the interaction of the two can lead to perverse outcomes unintended by the state : China's political elites depend on SOEs to carry out certain state objectives (e.g. energy security) and devise preferential policies (e.g. subsidies, insurance, bailouts) that enable firms to accomplish these objectives. SOEs, however, take advantage of these policy perquisites to seek rents. Knowing that the state will bail them out when investments fail, they take excessive risks when choosing host countries to earn high returns, ultimately passing on the cost of failed investments to the disenfranchised public. I apply this core insight to evaluate three aspects of China's approach to outbound investments: investment decisions by Chinese firms; the effect of Chinese investment on host country development and governance; and China's foreign policy toward economies that are the sites of its foreign investment

peer-reviewed ; This article investigates the effects of China's outward direct investment (ODI) on the institutional quality of the Belt and Road (B&R) countries. Based on a panel data set of 63 B&R countries during the period 2003 to 2016, we find that China's ODI improves the institutional quality of B&R countries not only in the short run but also in the long run. Further, although China's ODI exerts no differential impacts on host country institutional dimensions of "control of corruption," "government effectiveness," and "political stability" in countries with different natural resource endowments, it improves their institutional dimensions of "regulatory quality" and "rule of law," implying that China's ODI may help the host B&R countries minimize the "resource curse". As one of the most important strategies for China's opening-up development in the current era, the B&R initiative serves as means to promote sustainable development of B&R countries. The article therefore contributes to existing scholarship on the institutional effects of China's ODI and sheds light on the mechanisms that drive sustainable development.

This article investigates the effects of China&rsquo ; s outward direct investment (ODI) on the institutional quality of the Belt and Road (B& ; R) countries. Based on a panel data set of 63 B& ; R countries during the period 2003 to 2016, we find that China&rsquo ; s ODI improves the institutional quality of B& ; R countries not only in the short run but also in the long run. Further, although China&rsquo ; s ODI exerts no differential impacts on host country institutional dimensions of &ldquo ; control of corruption,&rdquo ; &ldquo ; government effectiveness,&rdquo ; and &ldquo ; political stability&rdquo ; in countries with different natural resource endowments, it improves their institutional dimensions of &ldquo ; regulatory quality&rdquo ; and &ldquo ; rule of law,&rdquo ; implying that China&rsquo ; s ODI may help the host B& ; R countries minimize the &ldquo ; resource curse&rdquo ; . As one of the most important strategies for China&rsquo ; s opening-up development in the current era, the B& ; R initiative serves as means to promote sustainable development of B& ; R countries. The article therefore contributes to existing scholarship on the institutional effects of China&rsquo ; s ODI and sheds light on the mechanisms that drive sustainable development.

China has become a major player in the world foreign direct investment market. After emerging, during the 1980s, from its isolation and beginning its integration into the world economy, China rapidly became a major host country for foreign direct investment (FDI). This article provides a brief review of China's inward and outward direct investment, as well as its policy context and challenges that China is facing.

As China's outward foreign direct investment (FDI) has grown, its approach to international investment agreements (IIAs) has changed. China is now one of the world's most important outward investors, with Chinese FDI facing widespread criticism. The challenge for China is to adapt to this new configuration of interests stemming from these developments, both in terms of its national policies and the contents of its IIAs. In so doing, it is likely to influence, perhaps significantly, the further evolution of international investment law. This article deals briefly with the salient features of China's outward FDI and the policies that support it (Section A); the perception and reception of China's outward FDI in key host countries (Section B); and the changing nature of the country's approach to international investment treaties (Section C). The article concludes (Section D) with a brief review and outlook.

China has become the world's third largest outward investor, behind the United States and Japan. A growing body of literature suggests that China's regulatory framework for outward foreign direct investment (OFDI) is a determinant of the country's rising OFDI. This paper presents a holistic review of that framework, including some possibilities for its improvement. Overall, China's framework serves two objectives: to help Chinese firms become more competitive internationally and to assist the country in its development effort. In pursuing these objectives, the regulatory framework has moved from restricting, to facilitating, to supporting, to encouraging OFDI; but there are still strong elements of administrative control that make it cumbersome. State-owned enterprises (SOEs) seem to benefit particularly from the current framework when internationalizing through FDI.

They are barely visible on the global scene. But it is in part so because official statistics have difficulties in reflecting their real size. They are nevertheless gaining in importance, representing a challenge for those who want to understand why and how they expand. Analysts are at the beginning of their quest for explaining how transnational corporations from economies in transition fit into a new zoology of international business, in which there is space for many more species than previously believed. Policy makers in economies in transition, too, are trying to grasp with the dilemma that outward FDI presents for them: on the one hand, it strengthens the international competitiveness of the firms; on the other, it is an outflow of resources. On balance, some of the countries in transition, e.g. Hungary and Slovenia, have decided to promote outward FDI. ; Auf globaler Ebene sind sie kaum zu sehen. Zum Teil liegt es daran, dass es schwierig ist, sie in offiziellen Statistiken zu erfassen. Dennoch werden sie immer wichtiger und stellen eine Herausforderung für jene dar, die danach fragen, wie und weshalb sie expandieren. Analysten stehen erst am Anfang der Aufgabe, transnationale Gesellschaften aus Übergangsländern hinreichend zu definieren und einzuordnen. Politiker in Übergangsökonomien versuchen ebenfalls das Dilemma, das ausländische Direktinvestitionen (FDI) mit sich bringen, zu begreifen: Auf der einen Seite stärken sie die internationale Wettbewerbsfähigkeit der Firmen, auf der anderen Seite stellen sie einen Abgang von Ressourcen dar. Nichtsdestotrotz haben sich einige Übergangsländer wie Ungarn und Slowenien dazu entschlossen, FDI zu fördern.

Sovereign wealth funds (SWFs) have emerged in developing Asia as a policy response to an unprecedented accumulation of foreign exchange (FX) reserves since 2000. At the same time, developing countries have become an increasingly important source of outward foreign direct investment (FDI). The central objective of this paper is to evaluate the prospects for SWFs to serve as a major conduit for the region's outward FDI. In principle, FDI represents an attractive means of earning higher returns on FX reserves than traditional reserve assets. In practice, the limited institutional capacity and the political sensitivity of state-led FDI severely constrains the ability of developing Asia's SWFs to undertake FDI on a significant scale. Therefore, the potential for developing Asia's SWFs to become major sources of outward FDI is more apparent than real. This paper also explores the implications of the Santiago Principles and the global financial crisis on outward FDI by SWFs.

The paper re-investigates the determinants of China's outward foreign direct investment (OFDI) employing panel data analysis collecting between 2003 and 2014. The results highlight that the market-seeking variables as GDP, GDP Per Capita, and openness to trade have a positive impact on China's OFDI. In addition, Chinese investors are likely to be not associated with economic growth of host countries. Importantly, the previous studies confirmed that only the rich natural resources and the weak institutions countries attracted China's OFDI. However, we found out that, in recent years, not only weak institutions but also good institutions with rich natural resources countries attracted China's OFDI. Moreover, China – ASEAN FTA and cultural proximity between the host country and China both have a significant positive effect of China's OFDI.

The world has witnessed the rise of multinational corporations from emerging markets as well as the narrow gap of growth between developed and underdeveloped economies. Considering this, Chinese companies are looking for investment opportunities in different countries. The purpose of this review study is to find out the reasons, why Chinese companies wish to invest other country. During this review study, we aimed thoroughly investigate FDI. We found key motivations for Chinese firm to go abroad investment. We explored a variety of economic, political, social and external factors that influenced the organization to go global.

What drives the outward foreign direct investments (OFDIs) by emerging market firms (EMFs)? Drawing on a strategy tripod framework, this article proposes a theoretical model to predict OFDI by EMFs from China. Specifically, we use institution- and industry-based views to examine two facets of home country environment, namely, the supportiveness from home government and unfavorableness from home industry, as important determinants of OFDI, and compare the relative strength of these effects. Further, we use the resource-based view to argue that the effect of the home country environment is contingent on the international experience portfolios of EMFs.

Recent years have witnessed substantial outward foreign direct investment (OFDI) from many emerging economies. Should the governments of these economies encourage OFDI in order to promote domestic innovation? Much OFDI by emerging economy multinational enterprises (EMNEs) has been undertaken to acquire strategic assets overseas, but do these acquisitions bring innovation benefits at home? The empirical analysis presented in this paper considers the effects of OFDI on regional innovation performance, using a panel of Chinese provinces, and finds that OFDI has a very significant impact on domestic innovation. Furthermore, we also identify three contingent factors – absorptive capacity, foreign presence, and the competition intensity of the local market – that moderate the impact of OFDI on innovation performance.

The purpose of this study is to examine the role of push and pull factors that have influenced China's outward foreign direct investment (COFDI) in the Belt and Road Initiative (BRI) countries. The sample of BRI countries is divided according to three geographical regions representing Europe, MENA, and Asia for better understanding of the main factors that influence the COFDI across the respective regions. This study supports Dunning's FDI theory in modeling the determinants of COFDI in BRI economies by focusing on the role of push and pull factors. This present study also extends and improves the existing research by considering the new factors, new methodology, and splitting the sample BRI economies. Thus, a static, dynamic panel and quantile regression technique was employed to model COFDI determinants for 50 BRI countries from 2005 to 2016. The main findings revealed that China's minimum wage policy, including the host countries' natural resources, labor cost, and institutional factors were the key determinants influencing COFDI. However, some determinants such as the host countries' gross domestic product, total patents, trade openness, and inflation rate did not significantly influence COFDI. By splitting the sample according to the respective regions, the results revealed that only the minimum wage policy significantly influenced COFDI in the European region. In comparison, natural resources, gross domestic product, and minimum wage policy were statistically significant for the MENA region. In the Asian region, minimum wage policy, government index, and trade openness were proven essential for COFDI. The policy implications from this study suggest that MNCs from China need to strategize their location for investment in BRI economies. In complement, the BRI recipient countries need to show their advantage and strength in attracting more FDI from China. BRI economies and China MNCs can also be leveraged through understanding how strong the push and pull factors are exerting on outward investment from China. ...

This PhD project focuses on an important aspect of China's embrace of globalization – the fast-growing area of Chinese outward foreign direct investment (OFDI) – and examines its effects on labor protections in China over the last two decades. Much Chinese OFDI during this period has been concentrated in advanced economies where labor protection regulations and practices are stronger, and this novel economic phenomenon of Chinese OFDI may diffuse Western labor protection regulations and working conditions from Chinese OFDI destinations back to China. This thesis comprises four main chapters. Chapter I provides background and introduces the general research questions at the heart of the PhD thesis. It reviews the historical path taken by the Chinese economy since Reform and Opening Up in the 1980s and discusses the existing literature on labor protections on China. It also defines key terms used throughout the dissertation. Chapter II focuses on China's development over the past 20 years, particularly the rapid growth of OFDI and the effects of this new economic phenomenon on labor protections. It presents four hypotheses about the effects of OFDI on labor conditions in China, and then tests them with data from 31 provinces of China. The empirical analysis demonstrates that the association between Chinese OFDI and labor protections is not straightforward, though workplace occupational safety and health conditions have improved. Other types of labor diffusions may encounter political resistance from the Communist Party of China and the All-China Federation of Trade Unions (ACFTU). Chapter III explores the effects of Chinese OFDI on labor protections by analyzing one form of China's OFDI investing in Western Europe: Mergers and Acquisitions (M&As). It tests the hypothesis that as the amount of Chinese M&A-type OFDI enters European economies that have higher labor protection standards and practices than China, labor protections in China may increase and start to close the gap between China and Western European countries. Based on regressions with bilateral data generated from Thomson Reuters' SDC Platinum Dataset on M&As and labor protection outcome variables, there is some support for the hypothesis that labor regulations are improving in China. But there are no clear evidence to indicate changes in practical working conditions like wages and working hours. Chapter IV presents more detailed, firm-level case evidence on the linkage between Chinese OFDI and diffusions of labor protections. Five Chinese firms with different conditions of OFDI (the type of ownership, investment destinations, M&As) were investigated. Results show that labor diffusions are more likely for private firms that pursue M&A-type investment in advanced economies. Mandatory compliance pressure, economic incentives for improving competitiveness, and learning effects are the main diffusion mechanisms. Labor diffusions are particularly visible in areas such as occupational safety and health conditions. Evidence on the impact on industrial relations, e.g., Western-type trade unions emerging in China, is limited. The case studies also suggest that the Chinese authorities and state-owned enterprises are actively pushing back to reduce potential labor diffusions through the OFDI channel.

Gravity models utilize the attractive force concept as an analogy to explain volume of trade or capital flows. This paper aims at proving that direct investment flows between China and a group of South-East Asian countries are determined by standard variables included in gravity models such as: Gross domestic products of home and host economy and distance between them. In our gravity model on foreign direct investment (FDI) we include not only gravity variables but also other variables that may explain what factors affecting Chinese outward FDI (OFDI): Political risk, cultural proximity, the degree of openness to international trade and a proxy for natural resources. This paper, after having defined the variables that are capable of influencing Chinese OFDI, will suggest a method of econometric calculation of the gravitational model based on Prais-Winsten regression; correlated panels corrected standard errors.