Do Chinese SOEs and Private Companies Differ in Their Foreign Location Strategies?
Title: Do Chinese SOEs and Private Companies Differ in Their Foreign Location Strategies?
Series/Number: EUI RSCAS; 2012/27; Global Governance Programme-22; Global Economics
We empirically analyze the host-country determinants of Chinese outbound foreign direct investments (ODI) in the period from 2003 to 2008, using disaggregated data by country and sector and distinguishing between State-owned enterprises (SOEs) and privately owned firms. Our results show that the pattern of Chinese ODI differs according to corporate ownership. Private firms are attracted by large markets and host-country strategic assets and are averse to economic and political risks when choosing investment locations abroad. Differently, state-owned enterprises follow the strategic needs of their home country and invest more in natural resource sectors, being largely indifferent to the political and economic conditions in the host countries.
Subject: China; Foreign Direct Investment; Internationalization; Corporate Ownership; F14; F21
Type of Access: openAccess