Abstract

The One Belt One Road (OBOR) project is perhaps China's most significant international relations initiative in recent times. It is based on openness, harmony, inclusivity, mutual benefit and market operations and aims to connect the economically vibrant East Asia and the developed Europe by land and by sea, and in the process, it brings growth and development to tens of countries along the modern Silk routes. In this paper, we compare the impact of the main initiatives of OBOR, namely enhancements in physical infrastructure and improvements in border administration, on the trade of countries that have signed on to this project, especially countries along the six economic corridors. We find overwhelming evidence that shows improvements in border administration has the greatest impact on exports of corridor countries. Although physical infrastructure is important for trade, the Chinese government should place equal attention to improvements in trade facilitation to ensure trade routes operate seamlessly across the various corridors.

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border administration ;  infrastructure ;  one belt one road ;  trade

Abstract

Purpose Chinese investments abroad are being scrutinized more stringently because host governments fear that Chinese companies would steal domestically grown technology and know-how or be duped into a debt trap. The purpose of this paper is to provide a narrative of Chinese investments in a region that is neither developed nor underdeveloped – Central and Eastern Europe. The authors aim to provide an alternative view of Chinese investments abroad. Design/methodology/approach The authors base their narrative on face-to-face semi-structured interviews with eight Chinese firms that carried out mergers and acquisition activities in the region. Findings The respondents claim that they saved companies and jobs in the aftermath of the global financial crisis. Access to the China market and elsewhere has increased as a result of these investments. Transfer of technology has gone both ways depending on which partner had superior technology. Research limitations/implications It is important that Chinese investors emphasize the positive spillover effects from their investments, such as jobs saved, potential technology transfer and increased exports, when applying for FDI approval from host governments. Host governments, on the other hand, should evaluate each Chinese investment on its individual merits. Originality/value There is little that has been researched on the contributions of FDI from developing countries to host economies. This paper is an early attempt in this direction.

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Abstract

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Ethnic diversity ;  values diversity ;  innovation ;  creativity

Abstract

We draw on the knowledge from the fields of international economics and international marketing to improve our insights on the determinants of bilateral trade, in particular trade in Parts and Components (P&C). While trade economists have confirmed the importance of trade agreements, infrastructure and institutional quality among others, as important determinants of trade, international marketers have pointed to the critical role of trust and commitment among partners as antecedents to cross border relationships. In this paper, we introduce macro level variables to represent the antecedents of trust and commitment between dyads in a trade gravity model. We base our findings on 17,030 bilateral relationships involving 291 SITC 5 digit products that we classify as P&C. Our findings confirm the importance of cultural distance, business ethics and transaction specific investments in a bilateral trade relationship. In particular, we find that trust and commitment among partners are more important in P&C trade.

Keyword

business ethics ;  commitment ;  cultural distance ;  gravity model ;  parts and components trade ;  trade relationships ;  transaction specific investments ;  trust

Abstract

Purpose The purpose of this paper is to identify location factors that Chinese managers look for when making internationalization decisions and how the factors stack up in perceived importance. Over the past ten years, Chinese enterprises have become more multi-national in nature. China’s outward foreign direct investment (FDI) has been growing at a phenomenal rate. In 2012, China became the third largest investor, after the USA and Japan; and the largest investor among developing countries. How can host governments attract more of this Chinese capital? What are some short- to medium-term policies that host governments can initiate to make their respective nations attractive to Chinese companies? Design/methodology/approach The authors consider these questions by using a best-worst choice exercise among 114 senior corporate decision makers of Chinese companies who have or are planning to globalize. We rank 16 most common determinants that influence FDI location choice and evaluate their degree of importance. Findings The authors propose five “low hanging fruits” that policy makers should consider that could ensure their countries come within the radar of Chinese multi-nationals. These include promoting a clean and efficient business environment and strengthening/establishing political and economic relationships with China. Originality/value The originality of this study lies in the methodology of the study that forces respondents to make a trade-off in their decisions, which in a way is closer to reality. The respondents are also actual decision makers in their companies with regards to international investment decisions.

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China ;  Economic relationship ;  International business strategies ;  Location decisions ;  Outward FDI ;  Political relationship

Abstract

Although the effect of culture on national innovation levels is well-established, previous literature assumes cultural homogeneity within a nation. In this article we analyse two aspects of diversity – ethnic and values – and their impact on national innovation output. We show that ethnic diversity or fractionalization and values diversity are distinct and while the former has a negative effect on innovation, the latter contributes positively. However, countries are bound to have both types of diversity. We find that countries that are ethnically homogenous but diverse in values orientation are the best innovators.

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Ethnic diversity ;  fractionalization ;  innovation ;  values diversity

Abstract

If it eventuates the Trans-Pacific Partnership agreement (TPP) will include major economic powerhouses like the US and Japan, but China – the elephant in the room – has been excluded. Our evaluation of how China might fare in the TPP finds that the agreement would be a poor fit at the current stage of China’s economic development. Although China would gain both in terms of trade and a reform timetable, some features of this 21st-century agreement – the assistance given to state-owned enterprises, the standards for labour rights, protection of multinationals against the state and competition laws – would be stumbling blocks in the negotiation process. Thus, being left out of the TPP is no big loss for China.

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Abstract

Over the last ten years, Chinese enterprises have become more multi-national in nature. China’s outward foreign direct investment (OFDI) has been growing at a phenomenal rate. In 2012, China became the third largest investor, after the US and Japan; and the largest investor among developing countries. How can host governments attract more of this Chinese capital? What are some short to medium term policies that host governments can initiate to make their respective nations attractive to Chinese investors? We consider these questions by utilizing a best-worst choice exercise among 114 senior corporate decision-makers of Chinese companies who have planned or are planning to globalize. Using the maximum difference scaling methodology, we rank 19 most common determinants that influence FDI location choice. We propose five “low hanging fruits” that policy-makers should consider that could ensure their countries come within the radar of Chinese multi-nationals.

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The relationship between customer satisfaction and company performance has been extensively researched at both the consumer and firm levels. However, little is known about the impact of customer satisfaction at the economy-wide level, especially in Europe. This study aims to link customer satisfaction to personal consumption expenditure using panel data collected from 1999 to 2011 and covering nine European countries. Our findings suggest a significant relationship between customer satisfaction and consumer expenditure in these countries. In addition, economic structure, culture, political economy and socio-economic factors have been examined to understand the impact of cross-country differences on this relationship. The results reflect the importance of satisfied consumers on the economy as a whole; thus, efforts at boosting customer satisfaction should become a national agenda. ?? 2013 Elsevier B.V.

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Customer satisfaction ;  Customer satisfaction index (CSI) ;  Economic freedom ;  Personal consumption expenditure (PCE) ;  Self-expressive values ;  Service economy

Abstract

Most multinationals have a presence in the East Asian region and target the urban Chinese population. In an effort to win over the loyalty of consumers, Corporate Social Responsibility (CSR) has been used increasingly as a marketing strategy. This paper explores how personal values influence the attitude and behavior towards CSR among Chinese consumers. By collecting data from three major East Asian cities — Hong Kong, Shanghai and Singapore, and employing factor, cluster, conjoint and correspondence analyses, the authors demonstrate that Confucian value orientation can be a powerful antecedent of CSR support.

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Chinese consumers ;  Confucian values ;  Corporate social responsibility ;  CSR support ;  Value orientation