Location Strategies of Outward Direct Investment for Chinese Technology-Seeking Enterprises

Abstract:

The paper investigates the factors determining outward direct investment (ODI) location choices of Chinese technology-seeking enterprises based on the current international direct technology-seeking investment theory and analysis of the characteristics of Chinese technology-seeking firms. Technical and innovative advantages, research and development (R&D) input, high-technology industrialization, economic freedom, and market size are taken into consideration as independent variables. We use official Chinese ODI panel data collected between 2003 and 2012 to test the hypotheses. Our finding strongly supports for that great deal of patents and large market size in host country attract an influx of ODI by Chinese technology-seeking firms.

• Periodical: Advanced Materials Research (Volumes 1065-1069)
• Pages: 2467-2471
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.1065-1069.2467
• Online since: December 2014
• Authors: Dong Wang*, Yao Liu
• Keywords: Chinese Technology-Seeking Enterprises, Host Country, Location Strategies, Outward Direct Investment

References

[1] B. Ramasamy, M. Yeuhg, and S. Laforet, China's Outward Foreign Direct Investment: Location Choice and Firm Ownership: Journal of World Business Vol. 47 (2012), pp.17-25.

DOI: 10.1016/j.jwb.2010.10.016

[2] Dunning J. H, Reappraising The Eclectic Paradigm In an Age of Alliance Capitalism: Journal of International Business Studies Vol. 3 (1995), pp.461-491.

DOI: 10.1057/palgrave.jibs.8490183

[3] Du Q.Y., Zhu Q. Theory and Practice of Chinese Enterprises Technology Sourcing Foreign Direct Investment: Journal of International Trade Vol. 11 (2004), pp.66-69.

[4] Elise S., P. R. Krugman, and D. Tsiddon, Leapfrogging in International Competition: A theory of Cycles in National Technological Leadership: The American Economic Review Vol. 85 (1993), pp.1211-1219.

DOI: 10.3386/w3886

[5] Hymer S.: The International Operations of National Firms: A Study of Direct Investment, edited by Cambridge Mass MIT, NY (1960), in press.

[6] Kang, C. H, Wu, Q.F., and Sun, Y.L. Study on Technology- sourcing FDI of Southern Firms: Journal of WUT Vol. 29 (2007), pp.109-112.

[7] Khanna, T., and Palepu, K. G. Emerging Giants—Building World-class Companies in Developing Countries: Harvard Business Review Vol. 84 (2006), p.60–69.

[8] Kogut, B. Country Capabilities and The Permeability of Borders: Strategic Management Journal Vol. 12 (1991), pp.33-47.

[9] Lin, Q., Chen, Z.Y. An Theoretical and Empirical Study on The Strategy of The Technical—seeking Transnational Investment of China: Joumal of Finance and Economics Vol. 34 (2008), pp.86-99.

[10] Ozawa, Terutom, Foreign Direct Investment and Economic Development: Transnational Corporations Vol. 2 (1992), p.27－54.