Impact of corruption control, free information flow, and ICT infrastructure on China's outward foreign direct investment

ABSTRACT

This study examines the interplay between corruption control, Information and Communication Technology (ICT) infrastructure, and free information flow, assessing their collective influence on China's Outward Foreign Direct Investment (OFDI). Based on unbalanced panel data on China's OFDI flows to 182 countries from 2005 to 2020, we find that improved corruption control measures and advanced ICT infrastructure in host countries significantly increase China's OFDI. Furthermore, a more robust information flow, facilitated by e-participation and a free press in the host country, enhances the positive influence of corruption control measures on attracting China's OFDI. Importantly, the beneficial effect of corruption control on China's OFDI is amplified when the host country has well-developed ICT infrastructure that supports e-participation. By elucidating the complex interplay between institutions, ICT, and international business activities, this study contributes novel insights into the understanding of ICT's role in socioeconomic development, particularly in the context of foreign investment.

KEYWORDS:

• Information and communication technology
• foreign direct investment
• corruption control
• free information flow

Disclosure statement

No potential conflict of interest was reported by the author(s).