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How does the routing of FDI to and via tax havens confound our understanding of Chinese MNE identity? A critical review of the empirical literature on Chinese MNEs

Author

Listed:
  • Dylan Sutherland

    (University of Durham)

  • Jean-Francois Hennart

    (University of Tilburg
    Vienna University of Business and Economics)

  • John R. Anderson

    (University of Northern Iowa)

Abstract

An extensive empirical literature tests the motivations and characteristics of the outward foreign direct investments of Chinese MNEs. Much of it, however, suffers from serious shortcomings in its treatment and use of foreign direct investment data. In particular, most research fails to properly account for the ways in which Chinese MNEs route their foreign direct investments both to and via tax havens and financial centers. As a result, our understanding of the identity of Chinese MNEs still remains embryonic. We outline the nature of the most commonly found problems so as to inform future research.

Suggested Citation

  • Dylan Sutherland & Jean-Francois Hennart & John R. Anderson, 2019. "How does the routing of FDI to and via tax havens confound our understanding of Chinese MNE identity? A critical review of the empirical literature on Chinese MNEs," Asian Business & Management, Palgrave Macmillan, vol. 18(5), pages 337-359, November.
    • Handle: RePEc:pal:abaman:v:18:y:2019:i:5:d:10.1057_s41291-019-00058-2
    DOI: 10.1057/s41291-019-00058-2
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    3. Valacchi, Giulia & Doytch, Nadia & Yonzan, Nishant, 2021. "Impact of outward foreign direct investments on patent activity of Greenfield multinationals," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    4. Dylan Sutherland & John Anderson & Nicholas Bailey & Ilan Alon, 2020. "Policy, institutional fragility, and Chinese outward foreign direct investment: An empirical examination of the Belt and Road Initiative," Journal of International Business Policy, Palgrave Macmillan, vol. 3(3), pages 249-272, September.
    5. Wu, Yan & Strange, Roger & Shirodkar, Vikrant, 2021. "MNE divestments of foreign affiliates: Does the strategic role of the affiliate have an impact?," Journal of Business Research, Elsevier, vol. 128(C), pages 266-278.
    6. Fei Ge & Peipei Wu & Yun Feng & Lu Gao, 2023. "Do enterprises with foreign direct investments in tax havens prefer charitable donations? Evidence from China," Asian Business & Management, Palgrave Macmillan, vol. 22(5), pages 2056-2076, November.
    7. Malik, Ashish & Froese, Fabian Jintae, 2022. "Corruption as a perverse Innovation: The dark side of digitalization and corruption in international business," Journal of Business Research, Elsevier, vol. 145(C), pages 682-693.
    8. M. John Foster, 2023. "A fresh view of China’s OFDI, its motivations and risks thereto," SN Business & Economics, Springer, vol. 3(1), pages 1-19, January.
    9. Knoerich, Jan & Vitting, Simon, 2021. "The distinct contribution of investment promotion agencies’ branch offices in bringing Chinese multinationals to Europe," Journal of World Business, Elsevier, vol. 56(3).
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    11. Jones, Chris & Temouri, Yama & Kirollos, Karim & Du, Jun, 2023. "Tax havens and emerging market multinationals: The role of property rights protection and economic freedom," Journal of Business Research, Elsevier, vol. 155(PB).
    12. Dylan Sutherland & John Anderson & Nicholas Bailey & Ilan Alon, 0. "Policy, institutional fragility, and Chinese outward foreign direct investment: An empirical examination of the Belt and Road Initiative," Journal of International Business Policy, Palgrave Macmillan, vol. 0, pages 1-24.
    13. Yi-Chi Hsiao & Hsueh-Liang Wu & Chun-Ping Yeh, 2023. "An investigation of the bridging interface strategies used by Chinese MNE when undertaking FDI to Taiwan," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1485-1512, September.
    14. Christensen, Rasmus Corlin & Hearson, Martin, 2021. "The Rise of China and Contestation in Global Tax Governance," SocArXiv pzvy3, Center for Open Science.
    15. Aleksi Eerola & Arjen H. L. Slangen, 2022. "A Review of International Management Research on Corporate Taxation," Management International Review, Springer, vol. 62(5), pages 643-680, October.
    16. Wang, Chengqi & Piperopoulos, Panagiotis & Chen, Shihua & Ming, Alan Au Kai & Herbert, Kendall, 2022. "Outward FDI and Innovation Performance of Chinese Firms: Why Can Home-Grown Political Ties Be A Liability?," Journal of World Business, Elsevier, vol. 57(3).

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