Empirical research on factors determining China's OFDI location distribution

Xuesong Gu; Liyan Han

doi:10.1109/ICSSSM.2011.5959444

Empirical research on factors determining China's OFDI location distribution

Xuesong Gu^*
, Liyan Han

^*Corresponding author for this work

School of Economics and Management

Beihang University

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

1 Scopus citations

Abstract

This paper uses 116 host countries' cross-sectional data to empirically analyze the factors determining China's Outward Foreign Direct Investment (OFDI) location distribution, and provides some recommendations on how to form the optimal investment policy. The empirical results obtained by WLS regression method show that host countries' market scale, economic risk, FDI policy, investment continuity, culture connection and technology level have significant effect on OFDI flow; while market potential, resource endowment, labor cost and political risk do not. The main contribution of this paper is the revelation of significant difference in the factors determining China's OFDI towards developed countries and developing countries by Chow test, which would further benefit improving investment policy.

Original language	English
Title of host publication	8th International Conference on Service Systems and Service Management - Proceedings of ICSSSM'11
DOIs	https://doi.org/10.1109/ICSSSM.2011.5959444
State	Published - 2011
Event	8th International Conference on Service Systems and Service Management, ICSSSM'11 - Tianjin, China Duration: 25 Jun 2011 → 27 Jun 2011

Publication series

Name	8th International Conference on Service Systems and Service Management - Proceedings of ICSSSM'11

Conference

Conference	8th International Conference on Service Systems and Service Management, ICSSSM'11
Country/Territory	China
City	Tianjin
Period	25/06/11 → 27/06/11

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 10 Reduced Inequalities

Keywords

chow test
investment policy
location distribution
location factors
outward foreign direct investment

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10.1109/ICSSSM.2011.5959444

Cite this

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title = "Empirical research on factors determining China's OFDI location distribution",

abstract = "This paper uses 116 host countries' cross-sectional data to empirically analyze the factors determining China's Outward Foreign Direct Investment (OFDI) location distribution, and provides some recommendations on how to form the optimal investment policy. The empirical results obtained by WLS regression method show that host countries' market scale, economic risk, FDI policy, investment continuity, culture connection and technology level have significant effect on OFDI flow; while market potential, resource endowment, labor cost and political risk do not. The main contribution of this paper is the revelation of significant difference in the factors determining China's OFDI towards developed countries and developing countries by Chow test, which would further benefit improving investment policy.",

keywords = "chow test, investment policy, location distribution, location factors, outward foreign direct investment",

author = "Xuesong Gu and Liyan Han",

year = "2011",

doi = "10.1109/ICSSSM.2011.5959444",

language = "英语",

isbn = "9781612843094",

series = "8th International Conference on Service Systems and Service Management - Proceedings of ICSSSM'11",

booktitle = "8th International Conference on Service Systems and Service Management - Proceedings of ICSSSM'11",

note = "8th International Conference on Service Systems and Service Management, ICSSSM'11 ; Conference date: 25-06-2011 Through 27-06-2011",

}

Gu, X & Han, L 2011, Empirical research on factors determining China's OFDI location distribution. in 8th International Conference on Service Systems and Service Management - Proceedings of ICSSSM'11., 5959444, 8th International Conference on Service Systems and Service Management - Proceedings of ICSSSM'11, 8th International Conference on Service Systems and Service Management, ICSSSM'11, Tianjin, China, 25/06/11. https://doi.org/10.1109/ICSSSM.2011.5959444

Empirical research on factors determining China's OFDI location distribution. / Gu, Xuesong; Han, Liyan.
8th International Conference on Service Systems and Service Management - Proceedings of ICSSSM'11. 2011. 5959444 (8th International Conference on Service Systems and Service Management - Proceedings of ICSSSM'11).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

TY - GEN

T1 - Empirical research on factors determining China's OFDI location distribution

AU - Gu, Xuesong

AU - Han, Liyan

PY - 2011

Y1 - 2011

N2 - This paper uses 116 host countries' cross-sectional data to empirically analyze the factors determining China's Outward Foreign Direct Investment (OFDI) location distribution, and provides some recommendations on how to form the optimal investment policy. The empirical results obtained by WLS regression method show that host countries' market scale, economic risk, FDI policy, investment continuity, culture connection and technology level have significant effect on OFDI flow; while market potential, resource endowment, labor cost and political risk do not. The main contribution of this paper is the revelation of significant difference in the factors determining China's OFDI towards developed countries and developing countries by Chow test, which would further benefit improving investment policy.

AB - This paper uses 116 host countries' cross-sectional data to empirically analyze the factors determining China's Outward Foreign Direct Investment (OFDI) location distribution, and provides some recommendations on how to form the optimal investment policy. The empirical results obtained by WLS regression method show that host countries' market scale, economic risk, FDI policy, investment continuity, culture connection and technology level have significant effect on OFDI flow; while market potential, resource endowment, labor cost and political risk do not. The main contribution of this paper is the revelation of significant difference in the factors determining China's OFDI towards developed countries and developing countries by Chow test, which would further benefit improving investment policy.

KW - chow test

KW - investment policy

KW - location distribution

KW - location factors

KW - outward foreign direct investment

UR - https://www.scopus.com/pages/publications/81855212556

U2 - 10.1109/ICSSSM.2011.5959444

DO - 10.1109/ICSSSM.2011.5959444

M3 - 会议稿件

AN - SCOPUS:81855212556

SN - 9781612843094

T3 - 8th International Conference on Service Systems and Service Management - Proceedings of ICSSSM'11

BT - 8th International Conference on Service Systems and Service Management - Proceedings of ICSSSM'11

T2 - 8th International Conference on Service Systems and Service Management, ICSSSM'11

Y2 - 25 June 2011 through 27 June 2011

ER -

Empirical research on factors determining China's OFDI location distribution

Abstract

Publication series

Conference

UN SDGs

Keywords

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