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Spatial correlation effect of China's outward foreign direct investment in countries along the One Belt and One Road

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  • Shuzhong Ma
  • Mengheng Liu

Abstract

Promoted by both the “going out” policy and the “One Belt and One Road” (OBOR) Initiative, China's outward foreign direct investment (OFDI) has grown rapidly in the past two decades. A spatial network has gradually formed that facilitates global production, sales, and innovation. This paper studies the spatial correlation of China's OFDI network along the OBOR and its determinants. The block model analysis suggests that China's OFDI spatial network comprises four gradient sections. In addition, the analyses of quadratic assignment procedure and exponential random graph models demonstrate a tendency of agglomeration of China's OFDI, which may hinder the further development of its spatial correlation networks. Finally, we present some policy suggestions stemming from the study in the hope of helping both the government and firms to optimize their OFDI spatial layout strategy along the OBOR.

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  • Shuzhong Ma & Mengheng Liu, 2020. "Spatial correlation effect of China's outward foreign direct investment in countries along the One Belt and One Road," Pacific Economic Review, Wiley Blackwell, vol. 25(2), pages 228-249, May.
    • Handle: RePEc:bla:pacecr:v:25:y:2020:i:2:p:228-249
    DOI: 10.1111/1468-0106.12328
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    2. Ouyang, Shanshan & Li, Yanxi & Wu, Haowen & Zhao, Heng & Xu, Runxiang, 2023. "Structure and evolution of the greenfield FDI network along the belt and road," Research in International Business and Finance, Elsevier, vol. 64(C).
    3. Lianyue Feng & Helian Xu & Gang Wu & Wenting Zhang, 2021. "Service trade network structure and its determinants in the Belt and Road based on the temporal exponential random graph model," Pacific Economic Review, Wiley Blackwell, vol. 26(5), pages 617-650, December.
    4. Hui Wang & Xin Zhong, 2023. "An Empirical Study on the Impact of Chinese OFDI on the Global Value Chain Positions of Countries Along the Belt and Road and Threshold Effects," SAGE Open, , vol. 13(1), pages 21582440231, February.
    5. Wang, Hui & Si, Ieongcheng & Chen, Zhihua, 2024. "Does the Belt and Road Initiative promote China and the countries along the route to reconstruct the global value chain? Evidence from value-added trade," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 63-83.
    6. Yue Pu & Yunting Li & Jinjin Zhang, 2023. "Features and evolution of the ‘Belt and Road’ regional value chain: Complex network analysis," The World Economy, Wiley Blackwell, vol. 46(7), pages 2134-2156, July.

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