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Purpose: Under the guidance of the concept of openness and development, the paper grasps the mechanism of technology spillover in developed countries and analyzes how to better absorb advanced manufacturing technology based on empirical analysis so as to point out the path for the transformation and development of China's digital manufacturing industry. Design/methodology/approach: The paper constructs the panel data model and further analyzes the impact of international technology spillovers on the transformation and development of the digital manufacturing industry. Findings: This paper measures the level of technology spillover in the Yangtze River Delta region and finds that foreign direct investment (FDI) technology spillover and import trade technology spillover among four provinces and cities show a growth trend from 2010 to 2017. But after 2017, there is a certain degree of decline. Originality/value: With the advent of industry 4.0, the digital manufacturing industry of all countries in the world is developing with a new attitude, the global technology spillover methods are diverse and the spillover channels have changed greatly, which will affect the transformation and upgrading of China's digital manufacturing industry. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine the question, "How do firm-level, home-country and host-country environmental performance (EP) affect the outward foreign direct investment (OFDI) of Chinese multinational enterprises (MNEs)?" Design/methodology/approach: The authors examine the relationships between EP and OFDI propensity and between EP and OFDI intensity using a sample of 359 Chinese firms in industries with a significant environmental footprint between 2009 and 2019 (2,002 firm-year observations) and a Heckman two-stage model. Findings: This study shows that the propensity for OFDI by Chinese MNEs is significantly and positively related to the firm's prior EP and the country-level EP of China. However, the amount of FDI invested is significantly and positively related to the firm's prior EP and negatively related to the EP of the host country. Research limitations/implications: The findings suggest that FDI in a country by an MNE is determined by a combination of firm-level EP, home-country EP and host-country EP. This study finds that the decision to undertake FDI (propensity) and the decision about how much to invest (intensity) are determined by different factors. The propensity for FDI is determined by the home-country EP and firm-level EP. However, the intensity of FDI is determined by a combination of the host country EP and firm-level EP. A limitation is that this study only examines MNEs in China, so the findings may not apply to other countries. Originality/value: This paper shows that MNEs' EP is positively related to the propensity and intensity of their OFDI decisions. However, this paper shows that the home-country and host-country EP may also play an important role in determining the propensity or intensity of OFDI. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to conduct an analysis of the influence of both the breadth and depth of outward foreign direct investment (OFDI) undertaken by Chinese high-tech listed companies during the period spanning 2010–2019. The data pertaining to these companies was used as a research sample to analyze the effects of OFDI on radical innovation performance. Design/methodology/approach: Hierarchical regression analysis was used to test the proposed models, using survey data collected from 442 high-tech companies in China. Findings: The findings of this study indicate a curvilinear (i.e. U-shaped) relationship between the breadth/depth of OFDI and radical innovation performance. Additional analysis reveals that OFDI plays a role in facilitating innovation breakthroughs by enhancing the internal dynamic capabilities of companies. Moreover, it is observed that a well-established institutional environment in the host country of investment can positively moderate the relationship between OFDI breadth/depth and radical innovation performance. Originality/value: This study proffers a significant contribution to the understanding of the crucial role played by OFDI from emerging economy companies in enhancing radical innovation performance. Moreover, it offers theoretical guidance for multinational companies aiming to foster innovation breakthroughs. [ABSTRACT FROM AUTHOR]

Purpose: This paper reports on the impact of China's Community of Shared Destiny Policy (CCSDP) on ethnicity, and the development and trade benefits in Africa, whilst proposing suggestions for improvements. Design/methodology/approach: A mixed-research (desktop-based and online survey-based) approach was employed. Findings: Trade and foreign direct investment alone can account for 11.8% of changes in the peaceful coexistence of China and some selected African countries, and cause changes to the mutual prosperity of China and African nations, to the tune of 6.3%. Therefore, the activation of mutual prosperity among these nations is not necessarily trade and foreign direct investment. The CCSDP is effective and has increased economic development for ethnic groups (50%), although with some negative concerns. Research limitations/implications: Inadequate/small sample size for the study. Originality/value: Chinese investment in Africa has had a transformative impact, driving economic growth, improving infrastructure, and fostering regional integration. The share of trade between China and Africa in the continent's overall external trade has increased dramatically. Overall, the CCSDP should be kept in place, but with some modifications to improve its effectiveness and mitigate its negative effects. Finally, as China's engagement with Africa evolves, it is vital that partnerships are founded on mutual understanding, respect, and benefit, and that policies reflect the different needs and ambitions of African communities. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine the impact of host country corruption on foreign direct investment (FDI) from China to developing countries in Africa. With the opposing arguments that corruption is detrimental to or instrumental in FDI and mixed empirical evidence, this paper contributes to the literature by providing new evidence on the issue. Additionally, little research has been done on the impact of corruption on FDI made by developing country multinationals to developing countries. This paper fills a void in this area. Design/methodology/approach: Based on the published literature, as well as China and Africa contexts, the authors develop hypotheses that host countries with low corruption receive more FDI and resource-seeking investments weaken the relationship. The annual stock of Chinese FDI in 35 African countries, host country corruption data and other control variables from 2007 to 2015 are collected. Feasible generalized least squares models are used to test the hypotheses. Additional robustness tests are also conducted. Findings: The findings support the hypotheses. Specifically, Chinese investors make more investments in host countries with low corruption except for resource-seeking investments in resource-rich host counties. The results are statistically significant accounting for various control variables. The results of the robustness tests show that the main findings are robust. Originality/value: First, this study provides new evidence on the impact of corruption on FDI. Second, this study also fills a void by examining FDI from a developing country, China to other developing countries in Africa. Finally, this study also has a practical implication for Chinese multinationals investing in Africa. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to study the impact of outward foreign direct investment (OFDI) on the productivity of parent firms over the food industry. Design/methodology/approach: The main data in this paper are derived from the China Industrial Enterprise Database 2005–2013 and a data set of Chinese firms' OFDI information. Then this paper uses propensity score matching to match the treatment and control groups with firm characteristics and combines that with the differences-in-differences method to estimate the real effect of OFDI on total factor productivity. Findings: The food firm's OFDI significantly improves the parent firm's productivity (known as the OFDI own-firm effect), but this promotion only exists in the short term. The OFDI own-firm effect of food firms differs remarkably as the sub-sectors, regions and ownership of firms vary. The food firm's OFDI in "non-tax havens" and high-income destinations has a significantly stronger effect on the parent firm's productivity. FDI, R&D and exporting can effectively strengthen the OFDI own-firm effect of food firms. Originality/value: The effect of OFDI on food industry productivity has not been researched yet. This paper aims to fill this gap. This paper further divides the characteristics of food firms into different sub-sectors, regions and ownership types for a comparative analysis, with the aim of conducting a more comprehensive study at the micro-level of firms. In addition, an investigation into which factors influence the degree of the OFDI own-firm effect at the micro-level has not been found in the literature. This paper will draw its own conclusions. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to investigate the primary motivations for China's outward foreign direct investment (ODI) decisions. Design/methodology/approach: Using a panel data sample covering the period 2003–2012 and a comprehensive set of 176 host countries. Findings: This study finds that market size, trade variables and natural resource variables are strongly related to the Chinese ODI stocks. This indicates that Chinese ODI decisions are driven by both market- and resource-seeking motives. The subperiod sample test results lend even stronger support to the market-seeking motive for ODI. Originality/value: These results seem to emerge from the policy changes that were undertaken during the sample period. Consistent with subgroup tests, this study finds that the main purposes of China's ODI in the top 100 countries are natural resource explorations and production line replacements. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to explain the role of globalisation on the regional income growth disparities in the states of India and provinces in the People's Republic of China (PRC). Design/methodology/approach: The authors use two approaches to analyse regional growth disparities: growth accounting and the panel spatial Durbin model. Findings: The growth accounting shows that contributions of growth of capital intensity (GKI) and total factor productivity growth (TFPG) distinguish the high-income (HI) regions from medium-income (MI) and lower-income (LI) regions in India. In the PRC, the contributions of GKI and TFPG in MI regions are slightly higher than HI regions, but significantly higher than the LI regions. The empirical results find that foreign direct investment (FDI), domestic investment, human capital, and interaction of FDI and human capital explain income growth states/provinces in India and the PRC. A region's income growth and FDI inflows spread the benefit to neighbourhoods in both countries. Originality/value: The paper contributes by performing a comparative analysis of Indian states and the PRC's provinces by capturing the neighbourhood effects of economic growth, FDI, investment and human capital and also the interaction effects of FDI with human capital and domestic investment. A comparison of the decomposition of income growth to the growth of factor inputs and efficiency in Indian states and the PRC's provinces also adds to the existing literature. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to introduce economic history as a new stream of international business (IB) research. It offers a long-term perspective on how the IB has evolved over time, focussing on the interplay between multinational enterprise and the nation state. Design/methodology/approach: The paper uses existing scholarly literature on international economic history to develop eight key propositions regarding the interface between the politics and economics of foreign direct investment (FDI). Findings: There is a rivalry between nation states and competition between firms. These two forms of conflict interact. Nations use their leading firms as instruments of international policy while leading firms rely on political and financial support from home nations. Using historical evidence and cross-country comparisons, the paper explains has the scale and scope in IB activity have changed dramatically over time. Research limitations/implications: There is scope for more detailed historical studies on national policies towards inward and outward FDI. Practical implications: It is important to see the recent international economic policies of China in a long-run historical perspective and to appreciate the similarities between its policies and those of other countries in the past. Social implications: Many of the potential economic gains generated by FDI may be lost through an excessive commitment of resources to the pursuit of military power as a foundation for international political power. Originality/value: This paper challenges IB researchers to widen their horizons. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to use the institutional perspective to jointly explore the underlying motives that drive Chinese private small- and medium-sized enterprises (SMEs) to invest in the developed economy of Germany and the role China's institutional environment is playing in this context. Design/methodology/approach: Given the lack of recent in-depth studies, the authors use multiple case study method to present rich insights from elite interviews with executives belonging to seven Chinese SMEs and industry experts, as well as the study of firm documents, social media and the latest governmental policies. Findings: The results indicate not only market-, resource- and strategic asset-seeking motives, but contrary to the literature, also efficiency-seeking goals. Further driving factors are the integration in global value chains and high degrees of entrepreneurial orientation. The second major finding is that China's institutional environment induces widely divergent effects. Its ministries established new outward foreign direct investments (OFDI) support measures that are beneficial for some SMEs' post-entry operations. However, some firms are not aware of any support measures or suffer from discrimination that hinders innovation and from which they try to escape by investing abroad. Originality/value: This paper considers different levels of analysis (firm, entrepreneur, institutional environment) to investigate Chinese SMEs' motives in Europe's largest market. By examining why and how these firms use OFDI to a developed economy, the authors address an essential question for China's economy that is of primary political and academic concern ("How can China get that improved innovation that often seeds entrepreneurial growth?"). In addition, the study contributes to the growing discussion of institutional escapism in emerging markets by revealing five institutional hardships Chinese SMEs are facing and how this relates to their internationalization. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to explore the effect of the home country institutional environment on firms' outward foreign direct investment (OFDI) and how it is affected by institutional environment differences across home country subregions. Drawing on transaction cost theory, this paper examined the relationship between the Belt and Road Initiative (BRI) and Chinese firms' OFDI, as well as the moderating roles of local government officials' career horizons and state ownership. Design/methodology/approach: A sample of 5,018 Chinese firm-year observations with foreign investment activities was used over 11 years to estimate a panel-feasible generalized least square regression model. Findings: The results show that the BRI improves Chinese firms' OFDI in countries along the BRI route. Furthermore, this positive relationship is weaker for firms where provincial officials have longer career horizons and is stronger for state-owned enterprises (SOEs) compared to non-SOEs. Originality/value: The findings confirm the positive effect of home country institutional environment on firms' OFDI. Furthermore, the multiple government perspective offers new insight into the effects of the home country's institutional environment on OFDI. [ABSTRACT FROM AUTHOR]

Purpose: The Global recession of 2008 was the worst financial crisis in the postworld war economic history that brought in severe disruptions in global investments and capital flows. Not surprisingly, research interest in the field of market integration has considerably increased over the last decade. This paper analyses the dynamics of price integration among Asian financial markets during the postfinancial crisis period. Design/methodology/approach: We employ an Autoregressive Distributed Lag (ARDL) bounds testing approach to cointegration and a Granger Causality/Block Exogeniety test from a Vector Error Correction Model (VECM) on monthly stock index data of five leading Asian economies from April 2009 to March 2020. Findings: The cointegration results could not produce any conclusive evidence of long-run relations between stock markets. There exists weak price convergence among markets, and financial integration is partial and in an imperfect form. Research limitations/implications: Stock price performance in China is closely "coupled" with that in India, but both markets appear to be the short-run predictors of Asian stock returns. The research uses only the benchmark stock indices of the selected economies. Consideration of mid-cap and small-cap segments where foreign investments are significant today can validate the findings further. Practical implications: The asymmetric pattern of price behavior of Asian markets has important implications for the pricing efficiency of national markets and offers arbitrage potentials for global investors to optimize returns through market diversifications on a long-term perspective. The finding definitely will be a great help to investors who are potentially interested in a trading strategy that offers greater returns with limited exposure to market risks. Originality/value: Compared with previous studies, the research uses the most recent data of leading Asian markets and applies the robust method of ARDL Bounds testing approach that allows us to understand better if the economic recoveries and advancement have had an effect on market coupling and stock price transmissions. [ABSTRACT FROM AUTHOR]

Purpose In this paper, the authors aim to examine trade in parts and components of Mexico, Chile and Brazil, focusing in particular on trade of television parts (SITC 7711) and semiconductors (SITC 7763) with China and South Korea. They also study the impact of foreign direct investment (FDI) on supply chain activities.Design/methodology/approach The authors use sub-categories of trade data to look at export and import of parts and components involving China, South Korea, Mexico, Brazil and Chile. They also use two-stage regressions to examine the impact of FDI on supply chain trade.Findings The authors found preliminary evidence that there may be early signs of an emerging Trans-Pacific production network between these three Latin American economies and the China-based and South Korea-based East Asian supply chains. The authors argue that this budding network will improve economic welfare. To deepen the Trans-Pacific supply chain, it would be desirable for China and South Korea to consider joining the Trans-Pacific Partnership (TPP). In addition, FDI enhances trade in components.Practical implications To deepen the Trans-Pacific supply chain, it would be desirable for China and South Korea to consider joining the TPP. In addition, it would be beneficial for these Latin American economies to encourage more direct investment in infrastructure and in manufacturing facilities from Asia.Originality/value This paper is one of the earliest research papers examining the Trans-Pacific supply chain, linking China, South Korea with Mexico, Brazil and Chile. The authors also study the impact of FDI on supply chain activities. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to examine the determinants of foreign direct investment (FDI) in producer services in China using both country aggregate and provincial sub-sectoral data. Design/methodology/approach: This paper applies autoregressive distributed lag (ARDL) cointegration and panel data regression approaches in examining the determinants of Producer Service FDI (PSFDI). Findings: Our results show differences between the determinants of aggregate FDI and PSFDI. Contrary to the typical influencing factors of general FDI (that include GDP, openness, low wages and environmental quality), the two main determinants of PSFDI inflows to China are found to be high wages and research inputs (specifically the number of research workers as a proxy for research intensity). Data drawn from 26 Chinese provinces disaggregated at sub-sector level of producer services corroborate the results. Originality/value: We add to existing literature by identifying the key determinants of inward PSFDI in China also via a provincial-level data analysis and disaggregation at sub-sectoral level of producer services. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to analyze outbound investments from China at the time of economic crisis caused due to the coronavirus (COVID-19) pandemic and how target valuation and the host country's inbound investment policies influence the acquisition intents. As firms witness low valuations during an economic downturn, they become attractive targets for opportunistic buyers, who may be driven by motives beyond business and influenced by the home country's political agenda. Such attempts are countered with the adoption of restrictive investment policies in host countries. Design/methodology/approach: The study uses secondary data on cross-border acquisitions from China over the past year and compares the characteristics of these acquisitions with cross-border acquisitions of acquirers from other large developed and developing economies. Findings: Statistical analyzes show that there are significant differences in the way acquirers from China pursue strategic asset seeking, creeping and control seeking acquisitions during the pandemic and the pre-pandemic period. This paper also observes that reduced valuation of the target, due to economic downturn or otherwise, result in greater propensity in strategic asset seeking acquisitions by Chinese acquirers. At the same time, adverse policies at host nations negatively influence the strategic asset seeking propensity of these acquirers. In addition, the premium in the valuation of target assets during the pandemic does not drop significantly when compared with that of the pre-pandemic period. Originality/value: With the outbreak of COVID-19 and its concomitant economic impact across the globe, the study brings forwards insights on predatory foreign direct investment (FDI) and explores how policy responses in host countries can be comprehensive rather than disembedded and unilateral. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to indicate trade characteristics of Foreign direct investment (FDI) inflows in China and examine the dynamic interaction between FDI inflows and China’s international trade through empirical analysis. Design/methodology/approach – At first, this paper builds the probability distribution model (Poisson and negative binomial (NB)) to capture the characteristics of spatial distribution of all kinds of FDI firms in Chinese cities and provinces based on count data, so as to indicate the potentials for further introducing FDI inflows in China; Second, this paper investigates the effects of trade on FDI firms inflows based on probability regress model (Binary Logit, Tobit, NB, Poisson, zero inflated negative binomial) and shows how international trade accelerates the different kinds of FDI firms to agglomerate in Eastern, Middle and Western region by the endowments of factors; third, this paper empirically examines the magnitude and characteristics of trade effects generated by FDI inflows by building dynamic panel model based on continuous data. Findings – First, statistical tests of probability distribution model based on count data show that there are characteristics of spatial agglomeration of FDI firms such as manufacture firm, R & D firm, managing and marketing firm and total sectors, which obey NB distribution as whole; Second, this study indicate that FDI inflows have strong positive effects on the international trade in China’s provinces and on China’s regional trade, and that most of foreign firms in China are export oriented being strongly characterized as labor-intensive industries, especially, contributions of FDI to imports are greater than the contributions of FDI to exports in China’s Middle and Western trade, and the growth of FDI trade in China’s trade volume has been strong over the past years; third, the empirical results of models based on count data and continuous data indicate that FDI inflows have significantly positive relationship with international trade, that is, the relationship between FDI and international trade in the case of China is the characteristics with complement and imports substituting relationship. Research limitations/implications – Because of mixed data set for FDI inflows of processing and assembling trade and production-oriented FDI, efficiency-seeking and knowledge or technology – intensive FDI inflows in the past 36 years, the paper only investigate characteristics of FDI inflows in China before the turning point of financial crisis, but it is important for capturing the whole picture of trade characteristics of FDI inflows in China. Practical implications – The derived quantitative results imply that there are still greater potentials for further introducing FDI inflows in China, and decision-maker should make policy of introducing FDI inflows which are favorable to supporting innovative activities and economic agglomeration, and preferably encourage efficiency-seeking and export-oriented FDI inflows so as enhance quality and efficiency of economic growth, which are also helpful to accelerate upgrade of Chinese industry and gradually shorten gap of growth among Eastern, Middle and Western region. Social implications – FDI inflows in China not only stimulate the remarkable growth of bilateral trade between host country and home country, but also promote the growth of international trade between China and the rest of the world. Thus, policies of bilateral or multilateral free-trade and investment area should be encouraged, which will be also favorable to promote the growth and welfare in all the regions. Originality/value – This paper demonstrates that spatial distributions of FDI firms in Chinese cities and provinces obey NB probability distribution pattern, and puts forward the methodology of model based on count data and continuous data. Besides, this paper quantitatively indicates trade characteristics of FDI inflows in China as well as the dynamic interaction between FDI inflows and China’s international trade. [ABSTRACT FROM AUTHOR]

Purpose – This paper aims to examine the potential for “triangular cooperation” between investment partners from Australia, China and host African nations to contribute to the economic development in Africa. Design/methodology/approach – The paper discusses a number of complementarities between Australian and Chinese investors in mining, agriculture, energy, research and education and finance – sectors vital to Africa’s future development. These complementarities are examined in light of recent development studies on the benefits of triangular cooperation and recent literature examining links between foreign direct investment (FDI) policy and economic development. Findings – The paper concludes that there is much to be gained by making the most of the existing and potential synergies between Australian, Chinese and local investors in African settings. Research limitations/implications – The implications of this paper are, first, that African nations should keep the benefits of triangular cooperation in mind when designing FDI policies and, second, that Australian and Chinese investors should be more willing to explore potential investment partner synergies when investing in Africa. The paper also suggests an agenda for future research into how good design of FDI policies might best promote healthy economic development in African nations. Practical implications – Australian and Chinese companies should be more willing to explore potential avenues for cooperation when investing in Africa, while African governments should be more mindful of how rules and policies can maximise the local benefits of FDI. Social implications – African governments should be more mindful of the quality, rather than the quantity of FDI when drafting relevant laws and policies. Originality/value – The value of the paper is in applying the concept of “triangular cooperation” to direct investment. The paper also provides an original focus on Australia-China investment synergies in African settings. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to develop an integrated perspective on the relationship between multinationality and performance in the outward foreign direct investment (OFDI) of Chinese firms. The study not only represents contrasting OFDI patterns – namely, born global-natured multiple synchronous foreign investments versus conventional internationalization process (IP)-natured steady increasing foreign investments – but also contributes to understanding the extent to which explanations of home political influence need to be rooted within the general theory of multinationality. Design/methodology/approach: By testing a comprehensive panel observation of 8,635 OFDI projects from 1991-2016 in China, this study found that multinationality with the new pattern of multiple synchronous OFDIs has a superior performance effect compared with the conventional pattern of steady increasing OFDIs. Findings: This study also finds a positive relationship between multinationality (international diversification and home political influence) and the performance effect with the new pattern of multiple synchronous OFDIs, as well as a partial positive relationship between multinationality and the performance effect with the conventional pattern of steady increasing OFDIs. Research limitations/implications: The study extends the understanding of the performance effects of Chinese multinational enterprises, which may benefit more from the new pattern of multiple synchronous OFDIs than from the conventional pattern of steady increasing OFDIs when the home-country institution is strongly positioned. Originality/value: This paper concludes that multinationality needs an integrated framework that accounts for the new pattern of OFDI and the influence of diversification and home politics, particularly for the emerging country, China. [ABSTRACT FROM AUTHOR]

Purpose – This paper aims to investigate the determinants of foreign direct investment (FDI) by Chinese multinational enterprises (MNEs) over the period 1985-2011. Design/methodology/approach – This paper estimates a single equation model which uses long-run co-integration analysis and short-run analysis (error correction mechanism). This paper depends on annual data collected from the World Bank and the General Authority for Investment & Free zones Information & Decision Support Division for the period 1985-2011. Findings – This paper found a conventional result for market size. The author infers from the significant role played by Egyptian natural resource endowments that the institutional environment has strongly shaped Chinese FDI, leading to significant natural resources-seeking FDI. The author also finds that policy liberalisation in China has had a positive influence in stimulating Chinese FDI in Egypt. Originality/value – Despite this model being used to estimate the determinants of FDI by Chinese MNEs in several countries, this is the first time it is being used in Egypt using a time-series analysis. Moreover, this model which has been used in this paper uses both long-run and short-run analyses. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to identify and analyse determinants of Chinese outward foreign direct investment (OFDI) into a number of African countries for the period 2003-2012. Design/methodology/approach – A series of panel data models are used to estimate the determinants of Chinese OFDI into eight African countries: Nigeria, South Africa, Zambia, Ghana, Kenya, Algeria, Egypt and the Sudan. Findings – Results highlighted that Chinese investment in African countries is driven by access to natural resources, and factors related to infrastructure quality and the regulatory environment enforced by host governments. Originality/value – To the best of the authors’ knowledge, this is one of the first papers to identify empirical determinants of Chinese OFDI in Africa and it contributes from two perspectives. Firstly, it identifies drivers behind Chinese OFDI, but also importantly from the African perspective helps understand the reasons that attract investment from one of the world’s largest investors into one of the world’s poorest regions, given the emphasis that is placed on foreign direct investment today as an instrument of growth and development. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper was to investigate China ' s motive for its relations with Africa. Within that broad framework, the paper investigates China–Tanzania cooperation from an economic and social development perspective. It analyses the status of Chinese investments and, more specifically, it focuses on the increasing numbers of Chinese garages and assesses whether they have positive spill-over towards achievement of sustainable development. Design/methodology/approach – Case study was used; it involves an up-close, in-depth and detailed examination of the growth of Chinese garages in Tanzania, as well as its related contextual conditions including the overall impact of foreign direct investment (FDI) on the vehicle repair sector in Tanzania. Scholarly works from various sources including researchers as well as authoritative reports were consulted. Findings – The paper shows that there is an increase in Chinese garage investment which has brought significant benefits such as technology spill-over, increased employment albeit at low-level pay as well as functioning as a stimulus for Tanzanian self-employment. Practical implications – A free market environment which attracts significant FDI including Chinese garages should be strengthened. Chinese garages should not employ Chinese when there are Tanzanians with required expertise. Further research on the long history of relations between Tanzania and Scandinavian countries is better for comparison. Originality/value – The paper presents original findings based on scholarly work related to the growth of Chinese garage investments in Tanzania. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to apply a postcolonial perspective on the findings from ethnographic research in a multi-national corporation in Shanghai and shed light on the ways that western creativity narratives are deployed as a means to mobilise and transform workers into self-governing, obedient corporate subjects.Design/methodology/approach The research applied ethnographic approaches to understand how creativity narratives are enacted in cross-cultural settings.Findings Creativity discourses in China often provoke anxieties around national capacity, economic growth and indigenous innovation. Locally trained knowledge workers in China are often assessed as less creative than their western counterparts and the reason attributed to cultural, pedagogical and political differences. However, these factors are not static in China’s fluid economic landscape and neither do Chinese workers uniformly accept that they are less creative.Originality/value This paper sheds light on a previously unexamined aspect of dominant western creativity discourses, which may be useful in future work amongst practitioners in international business settings. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to analyze the subsequent investment success of EMNCs after their strategic asset-seeking foreign direct investments (FDIs), while internationalization trajectories of multinational corporations from emerging economies (EMNCs) have been extensively studied, Post-internationalization investment success of EMNCs is defined as extensive technological knowledge access and transfer for knowledge combination. This paper focuses on EMNC explicit knowledge access and transfer. Design/methodology/approach: This study analyzes US patents granted between 2000 and 2014 to leading innovation-oriented EMNCs from China and India as well as to their key competitors from mature industrialized countries (MMNCs). Wilcoxon Rank Sum Test is used to compare the explicit technological knowledge access and transfer patterns of EMNCs and MMNCs. With MMNCs as the benchmark, the comparison allows to imply the patterns and extent of technological knowledge access and transfer of EMNCs. Findings: While subsidiary reverse knowledge transfer is largely missing, EMNCs adopt a parent-centric approach in which the parent directly accesses and transfers explicit knowledge from the external environment of host locations. In doing so, EMNCs at least partially achieve the knowledge access and transfer goals of strategic asset-seeking FDIs. Originality/value: This study contributes to an in-depth understanding of EMNCs by empirically testing key predictions in extant EMNC literature, namely, the strategic asset-seeking in host locations and the systematic integration of accessed knowledge and resources with home country activities. This study also pioneers the use of the US patent and citation data to empirically study EMNCs. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to analyse the impact of foreign direct investment (FDI) on urban-rural income inequality in China.Design/methodology/approach This study uses the provincial-level panel data and employs the fixed-effects instrumental variable regression technique to investigate empirically the impact of FDI on urban-rural income inequality in China.Findings The study finds that while FDI has directly contributed to reducing urban-rural income inequality through employment creation, knowledge spillovers and contribution to economic growth, FDI has also contributed to increasing urban-rural income inequality through international trade.Practical implications The study has some policy implications. First, as the study finds that FDI not only contributes to reducing urban-rural income inequality through employment creation, knowledge spillovers and contribution to economic growth, but also contributes to increasing urban-rural income inequality through international trade, therefore, apart from improving local economic and technological conditions to attract more FDI inflows, China should re-design FDI policies by shifting away from encouraging export-oriented FDI to encouraging FDI flows into the industries and sectors in line with China’s overall economic structural adjustments and industrial upgrading. Second, policies should focus on increasing investment in infrastructure development and in public education, which not only can reduce urban-rural income inequality but also can attract more FDI inflows. And finally policies should be designed to accelerate urbanisation development by focusing on urban-rural integrated development, household registration system reform and proper settlement of rural migrants in urban areas, thus reducing urban-rural income inequality.Originality/value The paper makes two major contributions to the literature. First, the paper adopts the fixed-effects instrumental variable regression technique to deal with the endogeneity issues in estimating the impact of FDI on urban-rural income inequality, producing more consistent estimates. Second, the paper investigates not only the direct impact of FDI on urban-rural income inequality through the effects of employment creation, knowledge spillovers and contribution to economic growth, but also the indirect impact of FDI on urban-rural income inequality through its activities in international trade, adding new empirical evidence to the sparse literature on the impact of FDI on income inequality in China. [ABSTRACT FROM AUTHOR]

Purpose: How to enter and expand in a newly emerged foreign market is less understood. Should multinational enterprises move fast or slowly? In this study, the authors take China as the context to investigate what factors will lead to a fast expansion strategy in a foreign market. The purpose of this paper is to understand whether fast expansion benefits firms' performance in a rapidly emerging market. Design/methodology/approach: Based on insights from field interviews, the authors developed a theoretical framework. Then, the authors collected data from surveys of managers of multinational enterprises from Western countries to test their hypothesis. This research context is based on the experience of multinational enterprises in China which opened up to foreign direct investment in 1979. Findings: This study shows that internally, strategic long-term investment goals, top management team commitment and externally switching costs and the growth in the demand market which will push firms to expand fast in the newly emerged China market. Faster pace of expansion benefits the performance of multinational enterprises in a newly emerged market. Originality/value: Based on the onsite interviews followed by the survey of top managers of multinational enterprises located in China, this study provides a fine-grained analysis of the importance of pace and its key antecedents. Thus, the results provide new insights to decision-makers of multinational enterprises when considering expanding in an emerging market at its early stages of growth. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to develop a double mechanism model to separate two foreign direct investment (FDI) intra-industry spillovers mechanisms: spillovers by FDI intensity and by FDI efficiency. This paper seeks to illustrate the potential use of the double mechanism model rather than provide precise estimates of spillovers. The evidence on the links between technology and the nature, size and mechanisms of FDI spillovers effects in economically developing countries is mixed. Design/methodology/approach – A model is developed and tested, in principle. Empirical testing was conducted in two steps. In the first step, the authors examined the effect of each influencing factor to FDI spillovers separately. To complete this step, the authors divided the whole sample industry into sub-groups and tested them with the double-mechanism using ordinary least squares regression. This study applies Chinese National Bureau of Statistics manufacturing industry level data, for the years 2000, 2001 and 2002, including the food industry, beverage industry, textile industry, textiles and garments, chemicals and chemical products industry, overall manufacturing equipment, special equipment, computer and other electronic equipment manufacturing industries. Findings – The analysis suggests significant differences between types of spillovers: export orientation of domestic firms mainly influences FDI spillovers by intensity; the capability gap between local and foreign firms influences spillovers by efficiency; and the growth of local firms influences both types of spillovers. This paper develops existing models of FDI and suggests that disaggregating spillovers types may provide important theoretical and policy insights. Originality/value – This study has found, first, that compared with the classic single mechanism model, the double mechanism model is more appropriate for testing FDI intra-industry spillovers, as it is able to separate spillovers by intensity and spillovers by efficiency, which are shown as two distinct mechanisms for FDI spillovers. This allows a deeper analysis into each mechanism and the identification of relevant influencing factors. [ABSTRACT FROM AUTHOR]

Purpose China’s outward foreign direct investment (ODI) has become a recent phenomenon in that China is now rated as the world’s third largest country for ODI. Previous studies have found that China’s ODI is driven by the attractions of natural resources and overseas markets. Yet these studies have ignored the role of corporate governance at a national level, the paper aims to discuss these issues.Design/methodology/approach The Kaufmann et al. (1999) data set is used in our study and the data sample have covered the period from 2003 to 2012 for a comprehensive set of 171 host countries. Random effects model are applied in the paper and population average model is used to check the robustness of the results.Findings The authors find that the effects of macro-corporate governance are distinct in different sample periods, as well as in geographical and economic regions, when attracting China’s ODI. Indicators such as political stability, the absence of violence, regulatory effectiveness, regulatory quality, the rule of law and the control of corruption are found to be positively related to China’s ODI.Originality/value This is one of the first papers to investigate the relationship between macro-corporate governance indicators and China’s ODI. 171 countries are included in the data sample and sub-sample tests are also conducted. [ABSTRACT FROM AUTHOR]

Purpose: The paper examines the impact of export activity on productivity and how this effect is moderated by R&D investment and foreign ownership. Design/methodology/approach: A time-lag effect is taken into account when examining the proposed model. Data are collected from the Annual Industrial Survey of the National Bureau of Statistics of China. A dataset containing 117,340 firms across the sample period (2001–2007) are used to test the hypotheses. Findings: The results indicate that while R&D investment plays a significant role in strengthening the positive effect of export activity on a firm's productivity, foreign ownership surprisingly has a negative moderating role. Originality/value: Scholarly interest in the links between export activity and productivity is on the rise. However, the bulk of research has been focused on understanding the effects of export activity on productivity at the country or industry level. Little has been done at the firm level. Another gap in the literature is that the mechanism through which the impact of export activity can be leveraged to enhance the firm's productivity has been largely ignored. To address these issues, the study adopts the learning-by-exporting theory to examine the relationship between export and productivity at the firm-level and how R&D investment and foreign ownership may explain how learning can be leveraged to enhance the firm's productivity. Finally, these relationships are examined in the context of firms from an emerging market, China, which is especially relevant for the learning-by-exporting argument used in this study. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to examine the relationship between a foreign firm's likelihood to exit a host country and the population density of foreign firms in its industry in that county, as well as the moderating influences of this relationship. The authors hypothesize that a foreign firm's likelihood to exit has a U-shaped relationship with foreign firms' population density in the industry and this relationship will be weakened when: the foreign firm is located in a region where foreign firm presence is high; the foreign firm is in an industry that has a longer history of foreign direct investment; the firm has a longer tenure in the host country; and the firm is more adapted to the market and institutional environments of the host country. Design/methodology/approach: The authors test the hypotheses using a data set containing over 45,000 foreign firms in China between 1998 and 2007. Findings: The results show that the exit likelihood of a foreign firm has a U-shaped relationship with foreign firms' population density in the firm's industry in the host country. Furthermore, this relationship is moderated by the population density of foreign firms in the region where the firm resides, the length of time since the first foreign entrant in the industry and the extent of the focal firm's local adaptation. Originality/value: The study contributes to organizational ecology theory and the international business literature by extending the density-dependence model to the study of foreign firm survival/exit. Whereas a foreign firm's fate in the host country is heavily influenced by the population density of foreign firms in its industry, it can borrow legitimacy from other sources, or try to create legitimacy through its own actions, to reduce the impact of such density effects. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to examine the relationship between financial development and internationalization of Chinese firms, whether the above relationship could be varied for firms with different kinds of ownership, and the channels through which financial development affects internationalization.Design/methodology/approach This paper uses a sample of 2,053 firms for the period 2001 to 2013, and applies the methods of ordered logit, logit, and OLS regressions to examine the role of financial development on firms’ internationalization.Findings The results show that financial development accelerates the level of international process of Chinese firms, and this effect is stronger for the non-state-owned enterprises (NSOEs) than for SOEs. The authors also document that financial development increases the investment scale of outward foreign direct investment (OFDI). In addition, the evidence on the channels through which financial development affects internationalization indicates that financial development accelerates the level of international process in high-technology industries and industries that are more dependent on external financing, and promotes the technology-seeking OFDI, and these effects are more prominent for NSOEs than for SOEs.Originality/value First, this study examines Chinese firms’ internationalization from the perspective of financial development and focuses on the relationship between financial development and internationalization, and varies this relationship over firms with different kinds of ownership. Second, this study adds to the existing literature by identifying two channels through which financial development has an impact on internationalization, namely, external finance and high-tech intensiveness, and identifies the impact of financial development on technology-seeking OFDI. [ABSTRACT FROM AUTHOR]

Purpose The paper aims to investigate outward foreign direct investment (OFDI) by Chinese state-owned enterprises (SOEs), aiming to unveil whether the Chinese OFDI policy acted as a country-specific advantage (CSA) that has been turned by Chinese firms, particularly SOEs, into a firm-specific advantage (FSA).Design/methodology/approach Using a data set spanning 18 years (1996-2013) on international mergers and acquisitions (IM&As) by Chinese companies (SOEs and private-owned enterprises – POEs) and drawing on extant literature, the paper systematically compares the behavior of Chinese SOEs and POEs, aiming to identify differences in their behavioral patterns that indicate that SOEs have benefitted more from policy-induced advantages than their private counterparts.Findings Among other aspects, significant differences were found regarding the behavior of SOEs vis-à-vis POEs that seem to show that SOEs had greater support from public entities, leading them to close larger deals and purchase more companies/stakes in cash; acquire firms with greater debt (implying higher interest payments); and purchase smaller stakes than POEs (indicating that there are other objectives than control). This lends support to the assumption that Chinese SOEs are “sitting on piles of cash”, and that the availability of capital acted as a CSA that has been transformed into an FSA by the companies involved, notably by SOEs.Research limitations/implications The comprehensive and large-scale data set used includes wholly owned SOEs, leaving out of this research partially owned SOEs. The findings of this paper have implications for the discussion on competitive neutrality and for the academic, managerial and public policy debate.Originality/value To the best of the authors’ knowledge, this is the only study, to date, that shows systematic differences in financing patterns of OFDI (notably via IM&As) by Chinese SOEs and POEs, among other behavioral characteristics of both types of companies when conducting FDI abroad, linking that to CSAs and FSAs induced by CSAs. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to investigate how rapid tourism growth in Macao affected local small and medium-sized enterprises (SMEs). The liberalization of the gaming industry to multinational corporations (MNCs) in 2002 led to a sevenfold increase in foreign direct investments (FDI) in Macao.Design/methodology/approach A survey grounded in issues concerning how SMEs adapt to the effects of FDI in Macao was carried out by interviewing managers of local SMEs, MNCs and an SME association. Information from various published sources was also consulted to complement and update the analyses.Findings Findings revealed that the emergence of investments by MNCs in Macao brought favorable and unfavorable effects to local SMEs. Local SMEs were challenged in terms of recruiting and retaining human resources, given the attractive salaries and training offered by MNCs. Equally challenging for local SMEs was the effect of economic growth on the costs of property space in Macao’s small territory. However, local SMEs have advantages when collaborating with MNCs as the former serves as important partners in networking. Local SMEs can collaborate quicker with their network of local stakeholders which MNCs lack and need. The government and various stakeholders will need to continue their role in developing the capacities and capabilities of local SMEs.Research limitations/implications The research study has important public policy implications on structuring the foreign labor and property needs of local SMEs.Originality/value This paper provides insights on the challenges SMEs in small-open economies experience during rapid tourism growth fueled by MNCs, and some policy recommendations are proposed. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to investigate the causal link between foreign direct investment (FDI) and exports in China based on the knowledge capital model (KK model, Markusen, 2002).Design/methodology/approach The bootstrap Granger full-sample and sub-sample rolling window causality test is used to determine whether FDI can promote exports.Findings The full-sample causality test indicates no causal relationship from FDI to exports. However, considering structural changes of exports and FDI, the authors’ find that the full-sample test is not reliable. Instead, the authors use the rolling window causality test to revisit the dynamic causal relationship, and the results present significant effects from FDI on exports, mostly around periods in which the proportion of FDI from Hong Kong, Macao and Taiwan is increasing. Specifically, positive impacts of FDI on exports are stronger than the negative impacts in China.Research limitations/implications The findings in this study suggest a significant time-varying nature of the correlation between FDI and exports. The promotion effect of FDI to exports is proved by the rolling window approach; it thus supports the KK model that divides FDI into lateral FDI and vertical FDI and proves that the constitution of FDI is critical to the relationship between FDI and exports.Practical implications China has been facing adjustment of its economic structure in recent years, and in this situation, increasing the proportion of FDI that can bring advanced production function is critical for the industrial structural adjustment.Originality/value This paper uses the bootstrap rolling window causality test to investigate the time-varying nature of the causality between FDI and exports, considering structural changes for the first time. The authors further deepen the previous research and draw a more realistic conclusion. [ABSTRACT FROM AUTHOR]

Purpose This paper aims to review the effects of home regulatory institutions on outward foreign direct investment (OFDI) in the context of China and discuss the extent to which they can be extended to other emerging markets. The authors especially compare these empirical studies with theoretical discussions in each category, identify research gaps and suggest future research ideas. Practical implications are discussed.Design/methodology/approach It focuses specifically on three categories of regulatory institutions, including overall institutional development, liberalization of OFDI policies and state ownership (and its closely approximate forms). Using a systematic review, this paper has reviewed 26 empirical studies (23 quantitative and 3 qualitative studies) published in peer-reviewed journals.Findings These studies suggest that overall institutional development toward a market economy in general leads to increased OFDI, but this effect is contingent on the stage of such development and the capabilities of Chinese multinationals. Liberalized and supportive OFDI policies also facilitate OFDI activities but only into selective areas. Findings on state ownership have been mixed.Originality/value This review offers a full picture of empirical evidence on how multiple levels of regulatory institutions affect OFDI from China. In this way, the authors can identify the research gaps between theoretical discussions on home institutions and OFDI and empirical evidence. Thus, they make suggestions for future directions of studies. [ABSTRACT FROM AUTHOR]

Purpose: Most previous research assumes that the outward foreign direct investment (OFDI) decisions of multinational corporations (MNCs) are made independently of the actions or characteristics of their peers. Therefore, the important influence of peer effects on the OFDI strategy is often neglected. The purpose of this paper is to identify two broad categories of peer effects, i.e. learning-based and profit-driven imitations and examine the important influence of peer effects on MNCs' internationalization strategy. Design/methodology/approach: Using Chinese manufacturing firms as the empirical sample, the authors employ an econometric method (logit regression) to test the relationship between peer effects and an internationalization strategy. Findings: Learning-based and profit-driven imitations are positively associated with a focal MNC's OFDI decision. Policy uncertainty also positively moderates the relationship between peer effects and the OFDI strategy. Moreover, both peer effects are amplified when a firm is equipped with a dense export network. Originality/value: The study offers researchers and practitioners a detailed view of interorganizational imitation behavior in terms of an internationalization strategy. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to identify location factors that Chinese managers look for when making internationalization decisions and how the factors stack up in perceived importance. Over the past ten years, Chinese enterprises have become more multi-national in nature. China’s outward foreign direct investment (FDI) has been growing at a phenomenal rate. In 2012, China became the third largest investor, after the USA and Japan; and the largest investor among developing countries. How can host governments attract more of this Chinese capital? What are some short- to medium-term policies that host governments can initiate to make their respective nations attractive to Chinese companies?Design/methodology/approach The authors consider these questions by using a best-worst choice exercise among 114 senior corporate decision makers of Chinese companies who have or are planning to globalize. We rank 16 most common determinants that influence FDI location choice and evaluate their degree of importance.Findings The authors propose five “low hanging fruits” that policy makers should consider that could ensure their countries come within the radar of Chinese multi-nationals. These include promoting a clean and efficient business environment and strengthening/establishing political and economic relationships with China.Originality/value The originality of this study lies in the methodology of the study that forces respondents to make a trade-off in their decisions, which in a way is closer to reality. The respondents are also actual decision makers in their companies with regards to international investment decisions. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to estimate the China’s outward FDI efficiency and it determinants in 69 countries along the Belt and Road over the period of 2003-2013.Design/methodology/approach This paper defines the extent of the Belt and Road in terms of geographical boundaries, justifying the application of the stochastic frontier gravity model to the FDI analysis, and then constructing a frontier regression model to assess the China’s outward FDI efficiency and it determinants in countries along the Belt and Road.Findings Regarding the core gravity parameter estimates, China’s outward FDI was highly consistent with the gravity model. As far as policy parameters are concerned, China’s outward FDI was significantly restricted by some man-made barriers in host countries. According to the estimated FDI efficiency scores, China has huge outward FDI potential in countries along the Belt and Road. In general, China’s outward FDI efficiency demonstrated a consistent uptrend from the perspectives of both FDI flows and stocks over the period of 2003-2013. Although China’s outward FDI performance indicated a very uneven pattern across different countries and periods, there were no significant performance differences between the Road and Belt.Practical implications The Belt and Road initiative can be largely beneficial to China’s outward FDI, but the specific framework of cooperation should be designed on the basis of determinants of China’s outward FDI. The regional cooperation with the Road countries should mainly focus on the removal of business barriers and financial barriers. The regional cooperation with the Belt countries should mainly concern the improvement of local intellectual property protection, the reduction of local tax burden, and removal of business barriers and financial barriers.Originality/value To the authors’ best knowledge, no existing literature has specifically examined the efficiency of China’s outward FDI in the countries along the Belt and Road and its determinants. [ABSTRACT FROM AUTHOR]

Purpose This paper aims to investigate the interconnections between corporate ownership, tax system and controlling shareholder tunneling through intercorporate loans in an emerging market setting.Design/methodology/approach China's Enterprises Income Tax reform in 2008 abolished its previous multiple-tiers tax system under which foreign direct investment (FDI) firms enjoyed preferential tax rates than domestic firms by introducing a new unified-rate tax system. Using difference-in-differences tests, the author analyzes changes of controlling shareholders tunneling through intercorporate loans among Chinese listed companies around this reform.Findings The author documents significant reductions of intercorporate loans after the reform. More importantly, the author reveals that foreign-invested firms experienced larger reductions of intercorporate loans than domestic firms. The author also shows that state association matters for domestic firms' response to the reform. In addition, the author documents positive stock market reaction to the tax reform announcement for firms that exhibited higher level of tunneling prior to the reform, indicating market expectation of reduced principal-principal conflict post-reform.Research limitations/implications The findings suggest effective corporate governance system is warranted to constrain intercorporate fund transfers in emerging markets where tax incentives are used for attracting inward foreign direct investments. Institutional reforms in emerging markets aimed at removing market frictions can alleviate the problem of controlling shareholder expropriations of minority interests or tunneling.Originality/value This is a pioneering study that reveals the role of tax as a public governance mechanism in weak minority investor protection environment. [ABSTRACT FROM AUTHOR]

Purpose -- This paper aims to argue for a China transmuting to fast overtake USA in innovation based on the extrapolation of past statistical trend. Case studies in self and co-innovation are provided so that the documentation of the dynamics of knowledge flows and a brain-linguistic explanation is given as to why, in the future, the Chinese are likely to lead in innovation. Design/methodology/approach -- This paper illustrates a multi-method approach in research for Chinese Management Studies. First, the sociological background of China is highlighted (Mao Zedong's aphorism). Second, insights from OECD patent database are utilized. Third, the use of comparative research and development case-studies: self-innovation (Chinese) and co-innovation (contrasting Japanese versus French cooperation with Chinese). Fourth, is the inter-disciplinarily approach wherein the assimilating of knowledge is related to recent advances in brain research. Fifth, emphasizing the different levels in organizing for innovation: national (China), organizational (SOE), group processes and person-to-person, synapses within individual brains. Findings -- Statistical trend suggests that China is transforming and is on the path toward overtaking the USA in innovation. When will this happen? Using extrapolation as an indication, China may surpass the USA by the 50 per cent mark within the next decade. Insights into the processes of self-innovation and co-innovation are provided. Authors argue for a brain-linguistic explanation (Hebb, 1949) for further understanding why China will eventually lead ceteris paribus innovation, a function of the human brain. Originality/value -- This paper highlights on the basis of statistical trends (using OECD database) a rising, innovative China that is poised to overtake the USA in the near future. A major contribution is in providing insights of interactional processes required to foster innovation: self and co-innovation (comparing Japanese and French). The critical brain-linguistic role as the rationale as to why the Chinese are given a greater, more developed brain power that will eventually surpass the West in innovation. [ABSTRACT FROM AUTHOR]

Purpose: This study investigated the moderating role of democracy in the relationship between corruption and foreign direct investment. The purpose of this study is to understand whether corruption has different effects on the location decisions of multinational enterprises (MNEs) depending on the regime type. Design/methodology/approach: This study explored how institutional context influenced the impacts of corruption on the location decisions of MNEs, specifically using a sample of Chinese cross-border mergers and acquisitions between 2000 and 2020. Findings: This study assessed the role of democracy in the relationship between corruption and the location decisions of Chinese MNEs. In general, this study found that Chinese MNEs were hindered by host country corruption, but that these detrimental effects were weaker in the presence of more effective democratic institutions. Originality/value: This study contributes to the literature on institutional factors in international business through its simultaneous investigation of the effects of both democracy and corruption on the location decisions of MNEs. Moreover, there is a prevailing view that Chinese MNEs are willing to enter countries with high corruption, but the results of this study indicate that they are risk-averse in ways similar to their Western counterparts. [ABSTRACT FROM AUTHOR]

Purpose: The scholarly debate regarding the impact of inward foreign direct investment (FDI) on entrepreneurship remains inconclusive. This study aims to tackle this discrepancy by positing that the relationship between inward FDI and entrepreneurship in the host nation is not deterministic but is moderated by intellectual property rights (IPR) infringement hazards. These hazards are postulated to dictate the level of knowledge spillovers from inward FDI, thereby affecting entrepreneurial activities. Design/methodology/approach: This study uses panel data regression analysis using data spanning 30 Chinese provinces from 2010 to 2018. The Hausman test results rejected the null hypothesis, recommending the use of the fixed-effects estimator over the random-effects one for statistical consistency. Therefore, the fixed-effects estimator is used to test the hypotheses. Findings: The study's analysis reveals that the main effect of inward FDI on entrepreneurship is statistically insignificant. However, once IPR infringement hazards are introduced to the model as a moderator, the main effect turns statistically positive and significant. Notably, the positive main effect diminishes as IPR infringement hazards increase. Originality/value: Highlighting the role of IPR infringement hazards as a moderator, this research unveils the nuanced relationship between inward FDI and entrepreneurship, thereby addressing the ongoing theoretical debate. This study demonstrates that knowledge spillovers from inward FDI are not automatic but depend on concerns about IPR infringements in the host nation. The resultant spillovers are then translated into entrepreneurial activities. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate how the Chinese Belt and Road Initiative (BRI) and Chinese outward foreign direct investments (FDI) impact the Belt and Road countries (BRCs). It draws on postcolonial theory to investigate the (geo)political objectives behind the financial and economic means. Design/methodology/approach: In line with the nature of postcolonial studies, the study applies a discourse analysis integrating it with empirical data on indebtedness and trade. Findings: This study finds that FDI and the BRI, as a development project, need to be considered a double-edged sword for the receiving countries. The authors provide evidence that China has instrumentalized financial and economic means to gain political influence and pursue geopolitical ambitions. Moreover, investments into sensitive sectors (e.g. energy, infrastructure), combined with the BRCs' inability to pay back loans, could eventually lead to China gaining control of these assets. Research limitations/implications: The study investigates the financial and economic means that are instrumentalized to gain political influence while not considering flows of technology and know-how. It also limits itself to the study of FDI coming from one specific country, i.e. China. Therefore, no comparison and evaluation are made of FDI from other countries, such as the USA or European countries. Practical implications: By revealing noncommercial objectives and geopolitical ambitions that China pursues through the BRI, the authors derive policy implications for the BRCs, third countries and China. Originality/value: The study contributes to postcolonial theory and neocolonialism by investigating how China uses financial and economic means to achieve noncommercial objectives and pursue geopolitical ambitions. Additionally, the authors enhance the understanding of FDI by highlighting more subtle aspects of the complex and contextual nature of FDI as a social phenomenon, which have been overlooked thus far. The authors challenge the predominant positive framing of FDI and provide a counterpoint to the way FDI is often coined. [ABSTRACT FROM AUTHOR]

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.Findings This briefing looks at the strategic motives behind Chinese firms when looking to expand globally and create subsidiaries in foreign markets.Originality/value The briefing saves busy executives, strategists, and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format. [ABSTRACT FROM AUTHOR]

Purpose -- The purpose of this paper is to examine how home institutions moderate the influence of internationalization, and the effect this has on the performance of stock-listed Chinese firms. Design/methodology/approach -- A sample of 118 stock-listed Chinese firms over the period 2006-2011 was considered, using the panel data method. Findings -- The results show that foreign ownership and region-specific marketization help firms reap the performance benefits of internationalization, while state ownership plays an insignificant role. Research limitations/implications -- The findings may not hold for unlisted firms, service firms or firms from other emerging economies. Practical implications -- The study suggests that Chinese managers should take advantage of home country institutions to improve the effects of internationalization on performance. Originality/value -- This research suggests that the analysis of the performance consequences of internationalization should go beyond the nexus between internationalization and performance, and also consider the home institutional factors that may facilitate or constrain the focal relationship. [ABSTRACT FROM AUTHOR]

Purpose – The aim of this paper is to assess the impact of China’s trade agreement and foreign direct investment (FDI) flows to Nigeria with special reference to the manufacturing sector utilizing the following key economic performance indicators: inflation, unemployment, income and gross domestic product, to name a few. Since the turn of the millennium, China has enjoyed a substantial presence in the African continent. In fact, the country has signed bilateral agreements with Angola, South Africa and Sudan to name a few. Recently, China established its West African trade hub in Lagos, the economic capital of Nigeria, to be strategically positioned. The results of the study revealed conclusively that although China’s investments over the years have benefited the Nigerian economy and its various firms in the manufacturing sector, the agreement signed by both countries ultimately needs to be reexamined to ensure equity. Design/methodology/approach – To thoroughly analyze the effects of China’s investments in Nigeria, this study was carried out in two phases. The first analysis of this study is anchored on a “before/after” framework based on descriptive statistical analysis of the selected economic performance indicators chosen from selected cross-national data. Accordingly, the time frame for this study runs from 1993-2012 which roughly corresponds to the era when China commenced significant investments in Nigeria. Second, employees, policymakers and individuals in the manufacturing/textile industries were interviewed. Furthermore, participation from federal as well as local government agency staff members was solicited using the Delphi technique. Findings – Empirically, the results conclusively reveal China’s dominance in the manufacturing and textile sectors in Nigeria. In other words, at face value, China’s investments are ultimately good for the Nigerian economy. However, at a micro-level analysis, the researcher examined the human factor, that is, the families of former and current employees, abandoned businesses/factories and a decaying textile industry that was once vibrant. Originality/value – To the knowledge of the researcher, this is the first study attempting to assess the impact of the rise of China on the Nigerian economy by combining key economic performance indicator in tandem with face-to-face interviews and the Delphi technique. [ABSTRACT FROM AUTHOR]

Purpose: Chinese-listed firms with Belt and Road Initiatives (BRI) play a crucial role in advancing the outward investment policy of China. Board diversity can be vital, and intellectual capital disclosure (ICD) showing future earnings can build investor confidence in these firms. This study examines these two relationships in Chinese-listed firms with BRI projects during a predictable business outlook period (2019, pre-Covid period) and unpredictable business outlook period (2020, Covid period). Design/methodology/approach: The study used least squares regression that analysed the target population comprising 79 listed Chinese firms with BRI projects in 2019 and 2020. The China Stock Market and Accounting Research (CSMAR) database provided board diversity data. Analysing annual reports using content analysis provided the ICD data, collected by following an established intellectual capital (IC) coding framework in the literature. After collecting board-related data, the study calculated the diversity between boards in firms (diversity of boards – DOB) using cluster analysis. The study estimated the diversity within each board (diversity in boards – DIB) using Blau's Index. Findings: The findings indicate that in the predictable business outlook environment, DOB positively associates with ICD, and DIB negatively associates with ICD. In the unpredictable business outlook environment, the DIB and DOB interaction negatively associates with ICD, and DOB positively associates with ICD. Research limitations/implications: The findings apply to Chinese-listed firms with BRI projects and further research is required to generalise findings beyond them. This study used annual reports to collect ICD, but a future study could examine BRI firms' social media and website disclosures. The attributes selected for board diversity dimensions can contribute to bounded findings, and future studies could expand the board diversity attributes included. Practical implications: The findings provide insights into firms' board composition and structure associated with ICD. Originality/value: This is one of the first studies providing empirical evidence about board diversity and ICD of Chinese-listed firms with BRI projects. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate whether and why multinational corporations (MNCs) seek to reduce institutional costs of foreign direct investments (FDIs) by aligning with transnational political frameworks. Design/methodology/approach: This study uses the Chinese Belt and Road Initiative (BRI) to test whether MNCs' subsidiaries in China increase FDI into BRI-affiliated countries after the BRI's launch. This study compares FDIs by Chinese subsidiaries of foreign MNCs in the year before and two years after the BRI's announcement. Hypotheses are tested for two explanations of why foreign MNCs seek to exploit the BRI. Findings: Investments into BRI-affiliated countries increased after the announcement of the BRI, and this increase is positively moderated by institutional distance between the MNC home country and the BRI-affiliated target country. This shows that the greater the institutional costs of investing in a BRI-affiliated country, the more responsive the MNCs' Chinese subsidiary will be to the BRI. Research limitations/implications: This study demonstrates that MNCs respond to transnational political frameworks. This study only studies the immediate response because the BRI is an infrastructure project. Better infrastructure will, over time, lead to more investments; however, the immediate response is due not to infrastructure but political structure. Originality/value: The results show how MNCs use transnational political frameworks. The idea that MNCs can channel FDI through existing subsidiaries for this purpose has not previously been discussed in the literature. [ABSTRACT FROM AUTHOR]

Purpose: Viewing the domestic downside risk as a "pushing" factor for outward foreign direct investment (OFDI), this study aims to examine the surge in Chinese cross-border acquisitions (CBAs) between 2008 and 2017, a unique window when private firms in China were allowed to conduct CBAs. Design/methodology/approach: This study examines the effect of down-side risk on cross-border acquisition performance by using the sample of Chinese A-share listed companies from 2008 to 2017. Specifically, this study considers three kinds of systemic risk, systematic risk and idiosyncratic risk, and respectively examines their impact on CBAs activities; this study also investigates their subsequent results after CBAs activities. The contingency effect of state ownership on the above relationship is also discussed. Findings: The findings reveal that pre-CBA systemic risk explains the volume of CBA activities; CBAs are followed by a reduction in systemic risk; the interactions between systemic risk and CBAs decrease with the level of state ownership; and the above results do not hold for traditional risk measures (i.e. systematic risk and idiosyncratic risk). Originality/value: This study contributes to the literature by revealing the role of systemic risk as a "pushing" factor in the context of OFDI and suggesting an alternative explanation for CBAs from China: Chinese firms (especially private firms) took advantage of the rare opportunity between 2008 and 2017 given by the government to transfer assets overseas through CBA. [ABSTRACT FROM AUTHOR]