FDI location choice of Chinese multinationals in East and Southeast Asia: traditional economic factors and institutional perspective

This paper investigates the factors determining foreign direct investment (FDI) location choices ofChinese multinational firms. We developed a conceptual framework that synthesizes traditionaleconomic factors and institutional perspective. Then several hypotheses were developed in line with theframe...

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Main Authors: Kang, Y., Jiang, Fuming
Format: Journal Article
Published: Pergamon 2012
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/3209
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author Kang, Y.
Jiang, Fuming
author_facet Kang, Y.
Jiang, Fuming
author_sort Kang, Y.
building Curtin Institutional Repository
collection Online Access
description This paper investigates the factors determining foreign direct investment (FDI) location choices ofChinese multinational firms. We developed a conceptual framework that synthesizes traditionaleconomic factors and institutional perspective. Then several hypotheses were developed in line with theframework and empirically tested using panel data of Chinese outward FDI to eight economies in Eastand Southeast Asia across a time period of thirteen years. Our findings suggest that institutional factorsdemonstrate a higher level of significance, complexity and diversity in determining FDI location choice incomparison with economic factors, while both types of factors influence the FDI location choice ofChinese multinational firms. We also found that the FDI location choices of Chinese firms have a dynamic nature, as statistical evidence indicates a heterogeneous response of Chinese FDI towards different economic groups and during different time periods.
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institution Curtin University Malaysia
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last_indexed 2025-11-14T05:57:11Z
publishDate 2012
publisher Pergamon
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spelling curtin-20.500.11937-32092017-02-28T01:28:56Z FDI location choice of Chinese multinationals in East and Southeast Asia: traditional economic factors and institutional perspective Kang, Y. Jiang, Fuming economic factors Chinese multinationals location choice Outward foreign direct investment institutional perspective This paper investigates the factors determining foreign direct investment (FDI) location choices ofChinese multinational firms. We developed a conceptual framework that synthesizes traditionaleconomic factors and institutional perspective. Then several hypotheses were developed in line with theframework and empirically tested using panel data of Chinese outward FDI to eight economies in Eastand Southeast Asia across a time period of thirteen years. Our findings suggest that institutional factorsdemonstrate a higher level of significance, complexity and diversity in determining FDI location choice incomparison with economic factors, while both types of factors influence the FDI location choice ofChinese multinational firms. We also found that the FDI location choices of Chinese firms have a dynamic nature, as statistical evidence indicates a heterogeneous response of Chinese FDI towards different economic groups and during different time periods. 2012 Journal Article http://hdl.handle.net/20.500.11937/3209 Pergamon restricted
spellingShingle economic factors
Chinese multinationals
location choice
Outward foreign direct investment
institutional perspective
Kang, Y.
Jiang, Fuming
FDI location choice of Chinese multinationals in East and Southeast Asia: traditional economic factors and institutional perspective
title FDI location choice of Chinese multinationals in East and Southeast Asia: traditional economic factors and institutional perspective
title_full FDI location choice of Chinese multinationals in East and Southeast Asia: traditional economic factors and institutional perspective
title_fullStr FDI location choice of Chinese multinationals in East and Southeast Asia: traditional economic factors and institutional perspective
title_full_unstemmed FDI location choice of Chinese multinationals in East and Southeast Asia: traditional economic factors and institutional perspective
title_short FDI location choice of Chinese multinationals in East and Southeast Asia: traditional economic factors and institutional perspective
title_sort fdi location choice of chinese multinationals in east and southeast asia: traditional economic factors and institutional perspective
topic economic factors
Chinese multinationals
location choice
Outward foreign direct investment
institutional perspective
url http://hdl.handle.net/20.500.11937/3209