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ABSTRACT
This study analyses Chinese enterprises’ outward foreign direct investment (OFDI) from the perspectives of the Belt and Road Initiative (BRI) and home-country enterprise heterogeneity. It analyses the roles of BRI and the Asian Infrastructure Investment Bank (AIIB) in China’s OFDI using enterprise-level data for 2008–2017 from China Global Investment Tracker on Chinese enterprises’ OFDI in 128 countries. The results show that the roles of the BRI or AIIB in Chinese enterprises’ OFDI varies based on the ownership system of home country enterprises. BRI significantly affected the OFDI of central state-owned enterprises (SOEs) representing the national strategy, but not that of private enterprises. Interestingly, BRI implementation did not promote local SOEs’ OFDI significantly. Since local SOEs drive the local economy and obtain profits, they act similarly to private enterprises in investment selection.
Disclosure statement
No potential conflict of interest was reported by the authors.
Notes
1. For a detailed list of data sources, see in Appendix A.
2. In the regression for CSOE, the OFDI by LSOE and POE are excluded from the sample and vice versa.
3. One Belt One Road http://www.yidaiyilu.gov.cn/.
4. ‘Made in China 2025’ is a national strategy announced by the Chinese State Council in 2015 to transform China into an advanced global manufacturing leader through outward FDI and indigenous innovation.
5. On 9 November 2008, the Chinese government announced a two-year 4 trillion-yuan ($586 billion or £421 billion) stimulus plan to bolster economic expansion. This sum, about 16% of China’s economic output in 2007, is roughly equal to the total of all central and local government spending in 2006.