scholarly journals Analysis of the Impact of Psychic Distance on the Regional Selection of Chinese Outward Foreign Direct Investment

2016 ◽  
Author(s):  
Man-Yu Huang
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Psychic Distance ◽  
Outward Foreign Direct Investment ◽  
The Impact ◽  
Selection Of

Research on the impact of home country patent level on outward foreign direct investment: Empirical analysis via equal part linear regression model and Grey Computing

2020 ◽  
pp. 002072092092251
Author(s):  
Yuanbing Zhu ◽  
Xueying Chen ◽  
Gang Wang ◽  
Zuchang Zhong ◽  
Meier Zhuang
Keyword(s):  
Foreign Direct Investment ◽  
Linear Regression ◽  
Regression Model ◽  
Empirical Analysis ◽  
Linear Regression Model ◽  
Direct Investment ◽  
Outward Foreign Direct Investment ◽  
Equal Part ◽  
Patent Applications ◽  
The Impact

From the practice of developed countries, countries with higher patent applications and PCT patent applications (such as the United States, China, Japan, the United Kingdom, Germany, etc.) have relatively higher outward foreign direct investment, and the actual data of provinces in China also show that with the improvement of the patent level in various provinces and cities, the intensity of outward foreign direct investment in each province and city has also increased. At present, there are relatively few research data and the research method is relatively single. Therefore, collecting panel data on China’s 31 provinces from 2003 to 2016, this paper conducts an empirical analysis on the influence of patent level on outward foreign direct investment via analytical method of equal part linear regression and Grey Computing. By comparing analysis results with the model and the results with conventional linear regression model, the difference of different regression models is observed. Furthermore, the impact of China’s patent level on China’s inter-provincial outward foreign direct investment is further analyzed.

scholarly journals Role of Industry Factors in Financing the Outward Foreign Direct Investment by Indian Multinational Enterprises

2019 ◽  
Vol 21 (1) ◽  
pp. 124-141
Author(s):  
Vanita Tripathi ◽  
Sonal Thukral
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Probit Model ◽  
Outward Foreign Direct Investment ◽  
Parent Firm ◽  
Indian Parent ◽  
Industry Environment ◽  
The Impact

The article investigates the impact of industry environment of the home country (in which Indian parent firms operate) on financing their outward foreign direct investment (OFDI) for the period 2008–2009 to 2013–2014. Due to difficulty in empirically examining the flows within a multinational system there exists scant literature in this area. By employing random effects probit model we find that size and growth rate of the industry have important implications for OFDI financing by parent firm. Second, by including time effects, uniqueness of the industry to which the parent firm belongs significantly shapes the OFDI financing. Third, parent firms are found to significantly rely on their own strengths than industry environment in financing the OFDI, lending support to the ownership advantage theory of international business. Finally, parent firm is found to follow industry norms in financing their OFDI. The study has implications for supply-side factors determining capital structure of firm and internal capital available to a multinational.

Psychic distance and outward foreign direct investment: the moderating effect of firm heterogeneity

2020 ◽  
Vol 58 (7) ◽  
pp. 1497-1515
Author(s):  
Chusheng Chen ◽  
Yun Zhan ◽  
Changjun Yi ◽  
Xue Li ◽  
Yenchun Jim Wu
Keyword(s):  
Foreign Direct Investment ◽  
Emerging Economies ◽  
Direct Investment ◽  
Multinational Firms ◽  
Firm Heterogeneity ◽  
Moderating Effect ◽  
Psychic Distance ◽  
Outward Foreign Direct Investment ◽  
Content Type ◽  
Foreign Experience

PurposeThis study investigates the effect of psychic distance (PD) on outward foreign direct investment (OFDI) by multinational firms originating in emerging economies and the moderating effect of firm heterogeneity on this relationship.Design/methodology/approachAn empirical analysis based on a negative binomial regression model is conducted using OFDI data from 2008 to 2017 on companies listed on the Shanghai and Shenzhen Stock Exchanges in China, an emerging economy.FindingsThe results suggest a U-shaped relationship between PD and OFDI by firms in emerging economies. Both executive foreign experience and state ownership negatively moderate the U-shaped relationship between PD and OFDI.Practical implicationsEmerging economies should encourage and guide multinational firms in engaging in OFDI and emphasize the advantages and disadvantages of PD for multinational firms. Additionally, non-sate-owned firms should recruit those who have a foreign education to provide support for OFDI by firms in emerging economies. Multinational firms should determine investment locations by consulting with executives with foreign experience to improve their ability to engage in OFDI.Originality/valueThis study combines macro and micro perspectives and integrates PD and firm heterogeneity into the same model with a sample of multinational firms originating in China. The findings support the existence of a PD paradox, which helps to enriching the theory on foreign direct investment.

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