IDEAS home Printed from https://ideas.repec.org/a/cup/intorg/v76y2022i1p229-250_9.html
   My bibliography  Save this article

Chinese Power and the State-Owned Enterprise

Author

Listed:
  • Stone, Randall W.
  • Wang, Yu
  • Yu, Shu

Abstract

China has become a leading source of outward foreign direct investment (FDI), and the Chinese state exercises a unique degree of influence over its firms. We explore the patterns of political influence over FDI using a comprehensive firm-level data set on Chinese outward FDI from 2000 to 2013. Using six country-level measures of affinity for China, we find that state-owned and globally diversified firms appear to conform most closely to official guidance. Official investment directives and state visits link investments to state policies; Taiwan recognition and Dalai Lama meetings anchor our political interpretations; and UN General Assembly voting and temporary UN Security Council membership suggest that this intervention may be systematic. The results are robust to country, year, and sector fixed effects, and most do not hold for private or small firms. The results suggest that China uses FDI by prominent state-owned enterprises as an instrument to promote its foreign policy.

Suggested Citation

  • Stone, Randall W. & Wang, Yu & Yu, Shu, 2022. "Chinese Power and the State-Owned Enterprise," International Organization, Cambridge University Press, vol. 76(1), pages 229-250, January.
    • Handle: RePEc:cup:intorg:v:76:y:2022:i:1:p:229-250_9
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S0020818321000308/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luo, Lianfa & Cheng, Zhiming & Ye, Qingqing & Cheng, Yanjun & Smyth, Russell & Yang, Zhiqing & Zhang, Le, 2024. "Nonmonetary awards and innovation: Evidence from winning China's Top Brand Contest," China Economic Review, Elsevier, vol. 86(C).
    2. Huq, Tahsin Imtiazul & Kabir Hassan, M. & Houston, Reza & Sydul Karim, M., 2024. "The takeover Tango: Unraveling the impact of state-owned enterprise acquisitions on American competitors," Research in International Business and Finance, Elsevier, vol. 68(C).
    3. Yu Wang & Randall W. Stone, 2023. "China visits: a dataset of Chinese leaders’ foreign visits," The Review of International Organizations, Springer, vol. 18(1), pages 201-225, January.
    4. Calabrese, Linda & Wang, Yuan, 2023. "Chinese capital, regulatory strength and the BRI: A tale of ‘fractured development’ in Cambodia," World Development, Elsevier, vol. 169(C).
    5. Beibei Hu & Qiao Luan & Xue Meng & Kai Wang, 2023. "Media Inclination and Outward Foreign Direct Investment: Evidence from Chinese Firms," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(6), pages 134-155, November.
    6. Jing Li & Daniel Shapiro & Anastasia Ufimtseva, 2024. "Regulating inbound foreign direct investment in a world of hegemonic rivalry: the evolution and diffusion of US policy," Journal of International Business Policy, Palgrave Macmillan, vol. 7(2), pages 147-165, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:intorg:v:76:y:2022:i:1:p:229-250_9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/ino .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.