The economic policy uncertainty and the choice of entry mode of outward foreign direct investment: Cross-border M&A or Greenfield Investment

2021 ◽  
Vol 74 ◽  
pp. 101306
Author(s):  
Kexuan Zhou ◽  
Sanjay Kumar ◽  
Linhui Yu ◽  
Xinlin Jiang
Keyword(s):  
Economic Policy ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Entry Mode ◽  
Policy Uncertainty ◽  
Outward Foreign Direct Investment ◽  
Economic Policy Uncertainty ◽  
Cross Border

Economic Policy Uncertainty, Bilateral Investment Treaties, and Chinese Outward Foreign Direct Investment

2021 ◽  
Vol 94 (3) ◽  
pp. 519-557
Author(s):  
Yue Lu ◽  
Linghui Wu ◽  
Ka Zeng
Keyword(s):  
Economic Policy ◽  
Foreign Direct Investment ◽  
Host Country ◽  
Direct Investment ◽  
Policy Uncertainty ◽  
Outward Foreign Direct Investment ◽  
Bilateral Investment Treaties ◽  
Economic Policy Uncertainty ◽  
Chinese Investment ◽  
Investment Treaties

This paper examines the effect of bilateral investment treaties (BITs) in promoting Chinese outward foreign direct investment (COFDI) in the presence of rising economic policy uncertainty in China's partner countries. We postulate that the signing of BITs should help stimulate COFDI because the treaties send a credible signal to foreign investors about the host country's intent to protect Chinese investment, and make it more difficult for the host country to violate its treaty obligations. BITs that contain rigorous investment protection and liberalization provisions, in particular, should be more likely to encourage COFDI as they directly influence Chinese investors' expectations about the stability, predictability, and security of the host market. However, while BITs generally promote COFDI, host country economic policy uncertainty may also limit their effectiveness. This is because uncertainty tends to undermine investor confidence, trigger capital flows from high- to low-risk countries, and dampen commercial activities. Poisson pseudo-maximum likelihood (PPML) estimation models of the determinants of COFDI to 188 countries between 2003 and 2017 lend substantial support to our conjectures.

Determinants of foreign direct investment inflows: The role of economic policy uncertainty

2020 ◽  
Vol 161 ◽  
pp. 159-172 ◽  
Author(s):  
Nguyen Phuc Canh ◽  
Nguyen Thanh Binh ◽  
Su Dinh Thanh ◽  
Christophe Schinckus
Keyword(s):  
Economic Policy ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty ◽  
Foreign Direct Investment Inflows

Economic policy uncertainty and cross-border mergers and acquisitions

2021 ◽  
pp. 101911
Author(s):  
Andros Gregoriou ◽  
Binh Duy Nguyen ◽  
Tung Duy Nguyen ◽  
Huong Le ◽  
Robert Hudson
Keyword(s):  
Economic Policy ◽  
Mergers And Acquisitions ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty ◽  
Cross Border
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