Study on the Trading Partner Cultural Effects between Global Imports and Foreign Direct Investments in China

DOI

10.2991/icmess-18.2018.172How to use a DOI?

Keywords

National culture; Cultural differences; Foreign Direct Investments (FDI)

Abstract

With the acceleration of globalization and blocking of the international economy, international trade and Foreign Direct Investments (FDI) take up the largest slice when it comes to the national economy. And recently, studies conducted on the effect of trading partner cultural effects and the relationship between global imports and Foreign Direct Investments (FDI) have been noticed. This paper, by means of Hofstede's cultural dimensions that reflects on the national cultural characteristics, studies how cultural differences affect the imports and Foreign Direct Investments (FDI) to China. At the same time, an empirical analysis of the impacts of Hofstede's five cultural dimensions on the relationship between Global Imports and Foreign Direct Investments (FDI) to China is also carried out. Imports and Foreign Direct Investments data of China from 2001 to 2017 is used for this study and regression analysis is based on the gravity model. This analysis strongly indicates that for China, the higher of the index of uncertainty avoidance, the more trade amount to China, while the less the Foreign Direct Investments (FDI). It shows that cultural factors affect largely the relationship between global imports and Foreign Direct Investments to China, and cultural differences accelerate the exchanges among Countries.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yu Guo
PY  - 2018/06
DA  - 2018/06
TI  - Study on the Trading Partner Cultural Effects between Global Imports and Foreign Direct Investments in China
BT  - Proceedings of the 2018 2nd International Conference on Management, Education and Social Science (ICMESS 2018)
PB  - Atlantis Press
SP  - 782
EP  - 785
SN  - 2352-5398
UR  - https://doi.org/10.2991/icmess-18.2018.172
DO  - 10.2991/icmess-18.2018.172
ID  - Guo2018/06
ER  -