Research on the Location Selection of China’s OFDI in Southeast and South Asian Countries—From the Perspective of Institutional Distance

DOI

10.2991/aebmr.k.200708.035How to use a DOI?

Keywords

institutional distance, OFDI, location selection

Abstract

In the context of the Belt and Road Initiative, the scale of China’s OFDI continues to expand. Based on the perspective of institutional distance, this paper selected the developing countries along the “One Belt and One Road” route and located in southeast Asia and South Asia as the research objects, established the investment attraction model, and empirically tested the influence of institutional distance on China’s OFDI location choice from two aspects of regulatory institutional distance and normative institutional distance.The study found that the greater the regulatory distance between China and developing countries in Southeast Asia and South Asia, the less attractive it is to China’s OFDI. The greater normative institutional distance,the greater the attractiveness to China’s OFDI. When conducting foreign investment, Chinese enterprises should pay more attention to the gap between the normative institutional and the regulatory institutional of the host country.

Copyright

© 2020, 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  - Xuan Luo
AU  - Rui Hu
AU  - Chengjun Lu
PY  - 2020
DA  - 2020/07/09
TI  - Research on the Location Selection of China’s OFDI in Southeast and South Asian Countries—From the Perspective of Institutional Distance
BT  - Proceedings of the 4th International Symposium on Business Corporation and Development in South-East and South Asia under B&R Initiative (ISBCD 2019)
PB  - Atlantis Press
SP  - 181
EP  - 186
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200708.035
DO  - 10.2991/aebmr.k.200708.035
ID  - Luo2020
ER  -