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Chinese multinationals: how do institutional factors affect their location patterns?

Author(s): Diego Quer Ramón | Enrique Claver Cortés | Laura Rienda García

Journal: Cuadernos de Gestión
ISSN 1131-6837

Volume: 11;
Issue: 2;
Start page: 77;
Date: 2011;
Original page

Keywords: Emerging-market multinationals | China | institutional factors | location patterns | foreign direct investment

This paper analyses the impact of various host country institutional factors on the location patterns of 29 large Chinese multinationals. From a sample of 127 outward foreign direct investment (FDI) decisions made in 52 countries, our findings suggest that a greater difficulty in doing business and a high political risk in the host country do not discourage Chinese multinationals. However, the presence of overseas Chinese in the host country, a larger absolute host market size and a higher volume of Chinese exports to that country affect positively.
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