Theoretical and empirical analysis of outward foreign direct investment of Chinese companies(PDF)
《长安大学学报（社科版）》[ISSN:1671-6248/CN:61-1391/C]
- Issue:
- 2017年05期
- Page:
- 84-90
- Research Field:
- 经济与管理
- Publishing date:
Info
- Title:
- Theoretical and empirical analysis of outward foreign direct investment of Chinese companies
- Author(s):
- GONG Xiu-guo
- School of Economics, Sichuan University, Chengdu 610064, Sichuan, China
- Keywords:
- Chinese company; outward foreign direct investment; real option; international resources; price risk; RMB exchange rate risk
- PACS:
- F21；F23
- DOI:
- -
- Abstract:
- Since the outbreak of the international financial crisis in 2008, there was the explosive growth against the market in outward foreign direct investment of Chinese companies with the intensification of international economic turmoil and international market risk. The mature theory of transnational corporations in the west has enlightening significance for exploring the theory of outward foreign direct investment of Chinese companies, but it was not applicable or not fully applicable of Chinese companies. By resorting to the latest research results, the “real option” theory of Chinese companies’ direct investment to European and American developed countries was further promoted to a large number of developing countries, and econometric models were constructed. Empirical analysis and tests were carried out by using the monthly data of Chinese companies’ outward foreign direct investment since 2010. It is concluded that as a typical representative of emerging markets and a “world processing factory”, the fundamental reason for outward foreign direct investment of Chinese companies is to establish or obtain a “real option” overseas to avoid the growing price risk of international resources and RMB exchange rate risk; in other words, the higher the international market risk, the greater the value of “real option” overseas and the more outward foreign direct investment of Chinese companies, and vice versa. The results show that the empirical analysis and test results from the monthly data of Chinese companies’ outward foreign direct investment since 2010 fully support the theory of “real option”.
Last Update: 2018-01-04