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China's anti‐corruption campaign and outward foreign direct investment by state‐owned enterprises

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  • Zhen Qi
  • Tristan Kenderdine
  • Tingfeng Tang
  • Qiren Liu

Abstract

This paper explores political factors in the determination of China's State‐Owned Enterprises' (SOEs') outward foreign direct investment (OFDI). We examine China's anti‐corruption campaign as a political intervention into economic decision making. Based on reliable data on China SOEs' OFDI, we find that the anti‐corruption campaign launched by the Chinese Communist Party in 2013 has had a negative influence on the growth of SOEs' OFDI. Further statistical analysis suggests that the negative impact of the anti‐corruption campaign on SOEs' OFDI growth is greater when the anti‐corruption effort is stronger, the SOE more monopolistic, and the institutional quality of the host state greater.

Suggested Citation

  • Zhen Qi & Tristan Kenderdine & Tingfeng Tang & Qiren Liu, 2022. "China's anti‐corruption campaign and outward foreign direct investment by state‐owned enterprises," The World Economy, Wiley Blackwell, vol. 45(9), pages 2950-2976, September.
    • Handle: RePEc:bla:worlde:v:45:y:2022:i:9:p:2950-2976
    DOI: 10.1111/twec.13244
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    Cited by:

    1. Feng, Qianbin & Hu, Xiao & Deng, Xinyi & Lu, Jun, 2023. "Anti-corruption campaign and capacity utilization of state-owned enterprises: Evidence from China’s central committee inspection," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 319-346.

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