The Effects of Institutional Difference and Resource Seeking Intent on Location Choice of Chinese Outward FDI

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dc.citation.issue5
dc.citation.volume8
dc.contributor.authorKang Y
dc.contributor.authorLi Q
dc.date.available2018-04-13
dc.date.issued2018-04-13
dc.description.abstractThis study seeks to explain how differences in political risk and economic freedom between host and home countries interact with investing firms’ resource-seeking intent to influence the firms’ outward foreign direct investment (FDI) location choice. Using panel data covering Chinese outward FDI in 62 host countries during the period of 2003-2014, we performed panel data regression analysis. The results show that when firms’ resource seeking intention is high, the FDI location choice is negatively associated with the differences in political risk, but positively associated with the differences in economic freedom between China and the host countries. The results also show that there is a substituting effect between political risk and economic freedom in their interactions with resource-seeking intent to influence FDI location choice. The findings suggest that the Chinese firms’ outward FDI location choice is a result of the interplay and the fit between the firms’ external legitimacy in the host countries and the firms’ internal legitimacy within the multinational organization.
dc.description.confidentialfalse
dc.edition.editionApril 2018
dc.format.extent981 - 1003
dc.identifierhttps://www.scirp.org/journal/paperinformation.aspx?paperid=83735
dc.identifier.citationTheoretical Economics Letters, 2018, April 2018, 8 (5), pp. 981 - 1003
dc.identifier.doi10.4236/tel.2018.85068
dc.identifier.eissn2162-2086
dc.identifier.elements-id433556
dc.identifier.harvestedMassey_Dark
dc.identifier.issn2162-2078
dc.languageEnglish
dc.publisherScientific Research Publishing Inc
dc.publisher.urihttps://www.scirp.org/journal/paperinformation.aspx?paperid=83735
dc.relation.isPartOfTheoretical Economics Letters
dc.rightsCopyright © 2018 by authors and Scientific Research Publishing Inc. This work is licensed under the Creative Commons Attribution International License (CC BY 4.0).
dc.subjectFDI Location Choice
dc.subjectResource Seeking Intent
dc.subjectPolitical Risk
dc.subjectEconomic Freedom
dc.subjectChinese Outward FDI
dc.titleThe Effects of Institutional Difference and Resource Seeking Intent on Location Choice of Chinese Outward FDI
dc.typeJournal article
pubs.notesNot known
pubs.organisational-group/Massey University
pubs.organisational-group/Massey University/Massey Business School
pubs.organisational-group/Massey University/Massey Business School/School of Management
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