The Belt and Road Initiative, political involvement, and China's OFDI
Abstract The Belt and Road Initiative (BRI) is an important strategy for China. This study examines the effect of political involvement on firms' outward foreign direct investment (OFDI) in belt‐road countries after the BRI. Using merged Chinese nonfinancial listed firm data, the fDi Markets da...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Wiley
2022-12-01
|
| Series: | International Studies of Economics |
| Subjects: | |
| Online Access: | https://doi.org/10.1002/ise3.15 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832086559881428992 |
|---|---|
| author | Haoyuan Ding Yi Li Liang Wang Chang Xue |
| author_facet | Haoyuan Ding Yi Li Liang Wang Chang Xue |
| author_sort | Haoyuan Ding |
| collection | DOAJ |
| description | Abstract The Belt and Road Initiative (BRI) is an important strategy for China. This study examines the effect of political involvement on firms' outward foreign direct investment (OFDI) in belt‐road countries after the BRI. Using merged Chinese nonfinancial listed firm data, the fDi Markets database, and the Thomson One database (formerly known as SDC Platinum) for the period 2008–2018, we find that political involvement has positive effect on firms' OFDI in belt‐road countries after the BRI. Furthermore, we find that the positive effect is heterogeneous across state‐owned enterprises (SOEs) and non‐SOEs. Political involvement has a positive effect on M&A for SOEs and Greenfield investment for non‐SOEs in belt‐road countries after the BRI. Our findings suggest that political involvement promotes firms' OFDI in belt‐road countries after the BRI and is helpful to the macro‐policy implementation. |
| format | Article |
| id | doaj-art-1d14c2e53f7c4985b06de54c7d22ab64 |
| institution | Kabale University |
| issn | 2831-3224 |
| language | English |
| publishDate | 2022-12-01 |
| publisher | Wiley |
| record_format | Article |
| series | International Studies of Economics |
| spelling | doaj-art-1d14c2e53f7c4985b06de54c7d22ab642025-02-06T11:40:41ZengWileyInternational Studies of Economics2831-32242022-12-0117445948310.1002/ise3.15The Belt and Road Initiative, political involvement, and China's OFDIHaoyuan Ding0Yi Li1Liang Wang2Chang Xue3College of Business Shanghai University of Finance and Economics Shanghai ChinaCollege of Business Shanghai University of Finance and Economics Shanghai ChinaCollege of Business Shanghai University of Finance and Economics Shanghai ChinaEconomics and Management School Wuhan University Wuhan ChinaAbstract The Belt and Road Initiative (BRI) is an important strategy for China. This study examines the effect of political involvement on firms' outward foreign direct investment (OFDI) in belt‐road countries after the BRI. Using merged Chinese nonfinancial listed firm data, the fDi Markets database, and the Thomson One database (formerly known as SDC Platinum) for the period 2008–2018, we find that political involvement has positive effect on firms' OFDI in belt‐road countries after the BRI. Furthermore, we find that the positive effect is heterogeneous across state‐owned enterprises (SOEs) and non‐SOEs. Political involvement has a positive effect on M&A for SOEs and Greenfield investment for non‐SOEs in belt‐road countries after the BRI. Our findings suggest that political involvement promotes firms' OFDI in belt‐road countries after the BRI and is helpful to the macro‐policy implementation.https://doi.org/10.1002/ise3.15Belt and Road InitiativeChinaoutward foreign direct investmentpolitical involvement |
| spellingShingle | Haoyuan Ding Yi Li Liang Wang Chang Xue The Belt and Road Initiative, political involvement, and China's OFDI International Studies of Economics Belt and Road Initiative China outward foreign direct investment political involvement |
| title | The Belt and Road Initiative, political involvement, and China's OFDI |
| title_full | The Belt and Road Initiative, political involvement, and China's OFDI |
| title_fullStr | The Belt and Road Initiative, political involvement, and China's OFDI |
| title_full_unstemmed | The Belt and Road Initiative, political involvement, and China's OFDI |
| title_short | The Belt and Road Initiative, political involvement, and China's OFDI |
| title_sort | belt and road initiative political involvement and china s ofdi |
| topic | Belt and Road Initiative China outward foreign direct investment political involvement |
| url | https://doi.org/10.1002/ise3.15 |
| work_keys_str_mv | AT haoyuanding thebeltandroadinitiativepoliticalinvolvementandchinasofdi AT yili thebeltandroadinitiativepoliticalinvolvementandchinasofdi AT liangwang thebeltandroadinitiativepoliticalinvolvementandchinasofdi AT changxue thebeltandroadinitiativepoliticalinvolvementandchinasofdi AT haoyuanding beltandroadinitiativepoliticalinvolvementandchinasofdi AT yili beltandroadinitiativepoliticalinvolvementandchinasofdi AT liangwang beltandroadinitiativepoliticalinvolvementandchinasofdi AT changxue beltandroadinitiativepoliticalinvolvementandchinasofdi |