Influence of Chinese Enterprises on the Agricultural Investment Mode and Performance in Laos under Institutional Distance

DOI

10.2991/icedem-19.2019.6How to use a DOI?

Keywords

formal institutional distance; nonofficial institutional distance; agricultural investment mode; agricultural investment performance

Abstract

In the 21st century of economic globalization, foreign direct investment has gradually become the main mode for international capital flow. As one of the countries that directly invested Laos earlier, China has become an indispensable partner of trade investment activities in Laos. As per the traditional concept, Sino-Laos institutional distance is small, which should has small influence on investment mode and performance, but in practice, the situation is quite the opposite. To study reasons causing inconformity of traditional theories and practice, this paper adopted field visit and designed questionnaires to investigate Chinese agricultural enterprises in Laos, and adopted more than two logistic regression model and OLS to build conceptual model and hypothesis influencing on agricultural investment and operation mode and performance of Chinese enterprises in Laos based on the recognition of institutional distance, and verified the influence of institutional distance on agricultural investment mode and performance. As the result indicates: Under the same institutional distance, the difference in the corporate recognition of system will influence the investment mode and operational performance of the enterprise. Under the official institutional distance, the institutional distance of economy and finance can exert an obvious influence, but in the nonofficial institutional distance, factors of cultural and psychological distance are more sensitive. Therefore, in this era when foreign investment is becoming increasingly important, Chinese enterprises should emphasize on the bilateral coordination of system resources, recognize cultural differences, narrow the gap as much as possible, and actively advocate the principle of seeking common points while reserving differences in respect of the institutional distance of the two countries.

Copyright

© 2019, 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  - Xuekun Li
AU  - Yuqin Zhang
AU  - Jing Jin
AU  - Yu Zhang
PY  - 2019/10
DA  - 2019/10
TI  - Influence of Chinese Enterprises on the Agricultural Investment Mode and Performance in Laos under Institutional Distance
BT  - Proceedings of the 2019 3rd International Conference on Economic Development and Education Management (ICEDEM 2019)
PB  - Atlantis Press
SP  - 21
EP  - 28
SN  - 2352-5398
UR  - https://doi.org/10.2991/icedem-19.2019.6
DO  - 10.2991/icedem-19.2019.6
ID  - Li2019/10
ER  -