The role of regional formal institutions in China's OFDI location choice and firm performance - The moderation roles of international experience and foreign capital utilization
Based on the micro data of Chinese enterprises, this paper examines the effects of regional formal institutional environment in China on the location choice and firm performance of Chinese OFDI, and discusses the roles played by international experience and the foreign capital usage. The results sho...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2022-01-01
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| Series: | Asia and the Global Economy |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2667111522000068 |
| _version_ | 1811243480110858240 |
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| author | Yi Qu Andrzej Cieślik Runze Zhang Shuo Zhao Nannan Ban |
| author_facet | Yi Qu Andrzej Cieślik Runze Zhang Shuo Zhao Nannan Ban |
| author_sort | Yi Qu |
| collection | DOAJ |
| description | Based on the micro data of Chinese enterprises, this paper examines the effects of regional formal institutional environment in China on the location choice and firm performance of Chinese OFDI, and discusses the roles played by international experience and the foreign capital usage. The results show that regional formal institutional environment of China significantly and positively affects the location choice and performance of Chinese OFDI. Moreover, different regional formal institutions have varied effects. In particular, institutional factors represented by the ‘government and market relationship’, ‘product market’ and ‘factor market’ development play the key role. It is also found that actual FDI utilization and firms’ international experience play positive and significant moderation roles in the institutional effect on China's OFDI, but such moderation effects are constrained to ‘intermediary organizations and legal environment’ as the institutional factor only. Therefore, the policy of improving regional institutional quality can have a positive effect on OFDI and corporate performance. |
| first_indexed | 2024-04-12T14:08:06Z |
| format | Article |
| id | doaj.art-c897bc80e6b3448d9511d9e29c45c0de |
| institution | Directory Open Access Journal |
| issn | 2667-1115 |
| language | English |
| last_indexed | 2024-04-12T14:08:06Z |
| publishDate | 2022-01-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Asia and the Global Economy |
| spelling | doaj.art-c897bc80e6b3448d9511d9e29c45c0de2022-12-22T03:30:01ZengElsevierAsia and the Global Economy2667-11152022-01-0121100029The role of regional formal institutions in China's OFDI location choice and firm performance - The moderation roles of international experience and foreign capital utilizationYi Qu0Andrzej Cieślik1Runze Zhang2Shuo Zhao3Nannan Ban4Surrey International Institute, Dongbei University of Finance and Economics, Dalian, 116025, ChinaFaculty of Economic Sciences, University of Warsaw, ul. Długa 44/50, 00-241 Warszawa, Poland; Corresponding author.Investment Bank Department, Great Wall Securities CO., LTD, Beijing, 100078, ChinaSurrey International Institute, Dongbei University of Finance and Economics, Dalian, 116025, ChinaSurrey International Institute, Dongbei University of Finance and Economics, Dalian, 116025, ChinaBased on the micro data of Chinese enterprises, this paper examines the effects of regional formal institutional environment in China on the location choice and firm performance of Chinese OFDI, and discusses the roles played by international experience and the foreign capital usage. The results show that regional formal institutional environment of China significantly and positively affects the location choice and performance of Chinese OFDI. Moreover, different regional formal institutions have varied effects. In particular, institutional factors represented by the ‘government and market relationship’, ‘product market’ and ‘factor market’ development play the key role. It is also found that actual FDI utilization and firms’ international experience play positive and significant moderation roles in the institutional effect on China's OFDI, but such moderation effects are constrained to ‘intermediary organizations and legal environment’ as the institutional factor only. Therefore, the policy of improving regional institutional quality can have a positive effect on OFDI and corporate performance.http://www.sciencedirect.com/science/article/pii/S2667111522000068Regional formal institutionsOutward Foreign direct investment (OFDI)Location choiceFirm Performance |
| spellingShingle | Yi Qu Andrzej Cieślik Runze Zhang Shuo Zhao Nannan Ban The role of regional formal institutions in China's OFDI location choice and firm performance - The moderation roles of international experience and foreign capital utilization Asia and the Global Economy Regional formal institutions Outward Foreign direct investment (OFDI) Location choice Firm Performance |
| title | The role of regional formal institutions in China's OFDI location choice and firm performance - The moderation roles of international experience and foreign capital utilization |
| title_full | The role of regional formal institutions in China's OFDI location choice and firm performance - The moderation roles of international experience and foreign capital utilization |
| title_fullStr | The role of regional formal institutions in China's OFDI location choice and firm performance - The moderation roles of international experience and foreign capital utilization |
| title_full_unstemmed | The role of regional formal institutions in China's OFDI location choice and firm performance - The moderation roles of international experience and foreign capital utilization |
| title_short | The role of regional formal institutions in China's OFDI location choice and firm performance - The moderation roles of international experience and foreign capital utilization |
| title_sort | role of regional formal institutions in china s ofdi location choice and firm performance the moderation roles of international experience and foreign capital utilization |
| topic | Regional formal institutions Outward Foreign direct investment (OFDI) Location choice Firm Performance |
| url | http://www.sciencedirect.com/science/article/pii/S2667111522000068 |
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