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Risks and Evolution Mechanism of China’s OFDI in Indonesia

In: China’s Direct Investment in Indonesia (1990–2022)

Author

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  • Kai Liu

    (Tsinghua University)

Abstract

As China deepens its investment in Indonesia, risk governance has become a core issue in the country’s internationalization process. This chapter adopts the CAGE distance framework as a theoretical basis and uses the Mahalanobis distance to measure the unidimensional and multidimensional cultural, institutional, geographical, and economic distances between China and Indonesia. With 518 Indonesian text data points, word cloud maps are drawn using Python to define the liability of foreignness risks faced by Chinese enterprises in Indonesia, clarify the evolution mechanism of risks, and analyze the spillover effects of risks with field research data.

Suggested Citation

  • Kai Liu, 2024. "Risks and Evolution Mechanism of China’s OFDI in Indonesia," Contributions to Economics, in: China’s Direct Investment in Indonesia (1990–2022), chapter 0, pages 119-155, Springer.
    • Handle: RePEc:spr:conchp:978-981-97-7328-2_5
    DOI: 10.1007/978-981-97-7328-2_5
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