The Belt and Road Initiative, Asian infrastructure investment bank, and the role of enterprise heterogeneity in China's outward foreign direct investment

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 en...

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Bibliographic Details
Published inPost-communist economies Vol. 33; no. 4; pp. 379 - 401
Main Authors Zhao, Jinjing, Lee, Jongchul
Format Journal Article
LanguageEnglish
Published Abingdon Routledge 19.05.2021
Taylor & Francis Ltd
Subjects
Asian Infrastructure Investment Bank
Banking
Belt and Road Initiative
Chinese outward foreign direct investment
enterprise heterogeneity
Foreign investment
Heterogeneity
Home ownership
Infrastructure
Local economy
Ownership
Private enterprise
Profits
Public enterprise
Roads & highways
China
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Summary: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.
ISSN:1463-1377
1465-3958
DOI:10.1080/14631377.2020.1745560