Journal of International Business Studies

, Volume 38, Issue 4, pp 499–518

The determinants of Chinese outward foreign direct investment

  • Peter J Buckley
  • L Jeremy Clegg
  • Adam R Cross
  • Xin Liu
  • Hinrich Voss
  • Ping Zheng
Article

DOI: 10.1057/palgrave.jibs.8400277

Cite this article as:
Buckley, P., Clegg, L., Cross, A. et al. J Int Bus Stud (2007) 38: 499. doi:10.1057/palgrave.jibs.8400277
Part of the following topical collections:
  1. Part Focused Issue – International Expansion of Emerging Market Businesses

Abstract

This study investigates the determinants of Chinese outward direct investment (ODI) and the extent to which three special explanations (capital market imperfections, special ownership advantages and institutional factors) need to be nested within the general theory of the multinational firm. We test our hypotheses using official Chinese ODI data collected between 1984 and 2001. We find Chinese ODI to be associated with high levels of political risk in, and cultural proximity to, host countries throughout, and with host market size and geographic proximity (1984–1991) and host natural resources endowments (1992–2001). We find strong support for the argument that aspects of the special theory help to explain the behaviour of Chinese multinational enterprises.

Keywords

China outward FDI theory of the multinational enterprise Chinese multinational firms 

Copyright information

© Academy of International Business 2007

Authors and Affiliations

  • Peter J Buckley
    • 1
  • L Jeremy Clegg
    • 1
  • Adam R Cross
    • 1
  • Xin Liu
    • 1
  • Hinrich Voss
    • 1
  • Ping Zheng
    • 1
  1. 1.Centre for International Business (CIBUL), Leeds University Business School, University of LeedsLeedsUK