Multilevel determinants of subsequent FDI in China

Lai Jun Luo, Yu Ze Luo, Chang Liu

Research output: Journal PublicationArticlepeer-review

10 Citations (Scopus)

Abstract

Among developing countries, China is the world's largest foreign direct investment (FDI) destination. A significant portion of the FDI in China comes from multinational corporations' (MNCs) subsequent investments of retained earnings or additional capital contribution. However, the characteristics of MNCs' subsequent investment have not been systematically studied. This study attempts to examine MNCs' subsequent investment in China both conceptually and empirically. Conceptually, the study approaches three levels of determinants: firm, location, and international, within an integrated model. Empirically, the study considers whether origin, experience, initial location, and other related factors significantly affect subsequent investment of MNCs after their initial entry into the Chinese market. Through empirical analyses, this study identifies some statistically significant factors around MNCs' subsequent investment decisions in China.

Original languageEnglish
Pages (from-to)105-120
Number of pages16
JournalThunderbird International Business Review
Volume50
Issue number2
DOIs
Publication statusPublished - Mar 2008

ASJC Scopus subject areas

  • Business and International Management
  • Geography, Planning and Development
  • Political Science and International Relations

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