China's outward foreign direct investment: Location choice and firm ownership

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SSCI Scopus ABDC-A

Abstract

This　article　evaluates　the　international　location　decisions　made　by　public　listed　Chinese　firms　during　the　period　2006-2008,　using　a　Poisson　count　data　regression　model.　Further,　we　categorize　the　firms　into　state-controlled　and　privately　owned　according　to　majority　ownership.　We　find　that　the　determinants　of　internationalization　differ　based　on　ownership.　State-controlled　firms　are　attracted　to　countries　with　large　sources　of　natural　Resources　and　risky　political　environments.　Private　firms　are　more　market　seekers.　Although　all　firms　have　strategic　intent,　the　attraction　is　commercially　viable　technology　rather　than　core　research　content.　Our　findings　also　show　that　existing　theories　can　sufficiently　explain　the　actions　of　private　Chinese　firms,　but　adjustments　are　needed　to　understand　the　behavior　of　state-controlled　multinationals.　

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