The Non-Linear Effect of Institutional Distance on the Location Selection of China's Outward Foreign Direct Investment

DOI

10.2991/icmesd-19.2019.36How to use a DOI?

Keywords

Institutional distance, Outward foreign direct investment, Location selection, Nonlinear.

Abstract

With panel data of 46 countries from 2003 to 2016, the author set up a static panel data model to investigate the relationship between the location selection of China's outward foreign direct investment and the institutional distances of different dimensions. The empirical results showed that there is a significant negative relationship between formal institutional distance, informal institutional distance and the location selection of China's outward foreign direct investment. In addition, the formal institutional distance cannot show its negative effect on location selection of China's outward foreign direct investment unless it was within a certain range, that is to way, there exists a non-linear effect of formal institutional distance on China's outward foreign direct investment. Meanwhile, in the case of formal institutional deficit, the negative effects played by the formal institutional distance on China's outward direct investment will be weakened.

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  - Zheng-Juan Xie
PY  - 2019/07
DA  - 2019/07
TI  - The Non-Linear Effect of Institutional Distance on the Location Selection of China's Outward Foreign Direct Investment
BT  - Proceedings of the 5th Annual International Conference on Management, Economics and Social Development (ICMESD 2019)
PB  - Atlantis Press
SP  - 238
EP  - 247
SN  - 2352-5428
UR  - https://doi.org/10.2991/icmesd-19.2019.36
DO  - 10.2991/icmesd-19.2019.36
ID  - Xie2019/07
ER  -