China's anti-corruption campaign and outward foreign direct investment by state-owned enterprises

Zhen Qi; Tristan Kenderdine; Tingfeng Tang; Qiren Liu

doi:10.1111/twec.13244

China's anti-corruption campaign and outward foreign direct investment by state-owned enterprises

Zhen Qi, Tristan Kenderdine, Tingfeng Tang^*, Qiren Liu

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

7 Citations (Scopus)

Abstract

This paper explores political factors in the determination of China's State-Owned Enterprises' (SOEs') outward foreign direct investment (OFDI). We examine China's anti-corruption campaign as a political intervention into economic decision making. Based on reliable data on China SOEs' OFDI, we find that the anti-corruption campaign launched by the Chinese Communist Party in 2013 has had a negative influence on the growth of SOEs' OFDI. Further statistical analysis suggests that the negative impact of the anti-corruption campaign on SOEs' OFDI growth is greater when the anti-corruption effort is stronger, the SOE more monopolistic, and the institutional quality of the host state greater.

Original language	English
Pages (from-to)	2950-2976
Number of pages	27
Journal	World Economy
Volume	45
Issue number	9
DOIs	https://doi.org/10.1111/twec.13244
Publication status	Published - Sept 2022

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title = "China's anti-corruption campaign and outward foreign direct investment by state-owned enterprises",

abstract = "This paper explores political factors in the determination of China's State-Owned Enterprises' (SOEs') outward foreign direct investment (OFDI). We examine China's anti-corruption campaign as a political intervention into economic decision making. Based on reliable data on China SOEs' OFDI, we find that the anti-corruption campaign launched by the Chinese Communist Party in 2013 has had a negative influence on the growth of SOEs' OFDI. Further statistical analysis suggests that the negative impact of the anti-corruption campaign on SOEs' OFDI growth is greater when the anti-corruption effort is stronger, the SOE more monopolistic, and the institutional quality of the host state greater.",

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AB - This paper explores political factors in the determination of China's State-Owned Enterprises' (SOEs') outward foreign direct investment (OFDI). We examine China's anti-corruption campaign as a political intervention into economic decision making. Based on reliable data on China SOEs' OFDI, we find that the anti-corruption campaign launched by the Chinese Communist Party in 2013 has had a negative influence on the growth of SOEs' OFDI. Further statistical analysis suggests that the negative impact of the anti-corruption campaign on SOEs' OFDI growth is greater when the anti-corruption effort is stronger, the SOE more monopolistic, and the institutional quality of the host state greater.

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China's anti-corruption campaign and outward foreign direct investment by state-owned enterprises

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