{"title":"Risks and Firms' Decision Making on Outward Foreign Direct Investment: An Empirical Analysis of China's State-owned Enterprises","authors":"Xiaosong Wang, Huan Wu, Le Li","doi":"10.1111/cwe.12450","DOIUrl":null,"url":null,"abstract":"<p>This study explored how the risks encountered by Chinese state-owned enterprises (SOEs) affected their decision-making on outward foreign direct investment (OFDI), using data regarding the relationship between the host countries and China. The following conclusions were drawn. Larger SOEs with fixed capital exhibited a higher probability of conducting OFDI and did so on a larger scale. Various risks in host countries significantly hindered the OFDI of Chinese SOEs. In pursuit of natural resources, Chinese SOEs chose to take risks. The amount of OFDI by SOEs was positively related to the political, economic, and geographical relations between China and the corresponding host country.</p>","PeriodicalId":51603,"journal":{"name":"China & World Economy","volume":"30 6","pages":"163-182"},"PeriodicalIF":2.9000,"publicationDate":"2022-11-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"3","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"China & World Economy","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/cwe.12450","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 3
Abstract
This study explored how the risks encountered by Chinese state-owned enterprises (SOEs) affected their decision-making on outward foreign direct investment (OFDI), using data regarding the relationship between the host countries and China. The following conclusions were drawn. Larger SOEs with fixed capital exhibited a higher probability of conducting OFDI and did so on a larger scale. Various risks in host countries significantly hindered the OFDI of Chinese SOEs. In pursuit of natural resources, Chinese SOEs chose to take risks. The amount of OFDI by SOEs was positively related to the political, economic, and geographical relations between China and the corresponding host country.
期刊介绍:
The bi-monthly China & World Economy was launched in 1993 by the Institute of World Economics and Politics, Chinese Academy of Social Sciences (CASS). It is the only English-language journal in China devoted to the topic of the Chinese economy. The journal aims to provide foreign readers with an objective, impartial, analytical and up-to-date account of the problems faced and progress made by China in its interaction with the world economy. Among its contributors are many distinguished Chinese economists from both academic and government circles. As such, it has become a unique window on China and is essential reading for all those concerned with China"s development.