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Varieties of state capital: What does foreign state-led investment do in a globalized world?

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  • Babic, Milan

    (University of Amsterdam)

  • Dixon, Adam
  • Fichtner, Jan

    (University of Amsterdam)

Abstract

Existing studies have scrutinized the rise of states as global owners and investors, yet we still lack a good understanding of what state investment does in a globalized economy, especially in host states. Comparative capitalisms research has analyzed foreign state investment as a potential source of patient capital for coordinated and mixed-market economies. However, this patient capital framework cannot explain the recent surge of protectionist sentiments, even among the ‘good hosts’ of state-led investment. Therefore, we go beyond the patient capital argument and develop a novel framework centered on the globalized nature of foreign state investment. We create and empirically illustrate a novel typology based on different modes of cross-border state investment – from financial to strategic – and different categories of host states. Our results provide a new pathway to study the rise and effects of cross-border state investment in the twenty-first century.

Suggested Citation

  • Babic, Milan & Dixon, Adam & Fichtner, Jan, 2021. "Varieties of state capital: What does foreign state-led investment do in a globalized world?," OSF Preprints tm82g_v1, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:tm82g_v1
    DOI: 10.31219/osf.io/tm82g_v1
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    References listed on IDEAS

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