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Globalization of Chinese firms, location choice, and socio-cultural milieu

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  • Jason Gurtovoy
  • Xiaohua Yang

Abstract

For a number of years, the bulk of Chinese outward foreign direct investment was found in countries with lower technological development and minimal management capabilities. Recent research and preliminary data have shown a swift shift in outward foreign direct investment allocation by Chinese multinational enterprises to OECD countries. We argue that the main reasons for this shift are: location strategy, firm-specific resources, new government policy, and socio-cultural milieu. This paper examines the factors which influence Chinese manufacturers' decisions to invest in OECD countries. We integrate the resource-based view, institutional view, and economic view to explain the propensity of Chinese manufacturing firm investment. We contribute to Chinese investment decision and foreign direct investment location theory by incorporating these three views.

Suggested Citation

  • Jason Gurtovoy & Xiaohua Yang, 2013. "Globalization of Chinese firms, location choice, and socio-cultural milieu," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 6(1), pages 166-176, March.
    • Handle: RePEc:taf:macfem:v:6:y:2013:i:1:p:166-176
    DOI: 10.1080/17520843.2012.755557
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    References listed on IDEAS

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    1. Daniel H. Rosen & Thilo Hanemann, 2009. "China's Changing Outbound Foreign Direct Investment Profile: Drivers and Policy Implications," Policy Briefs PB09-14, Peterson Institute for International Economics.
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