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

10 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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10.1111/twec.13244

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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.",

keywords = "China, anti-corruption campaign, incentives and constraints, outward foreign direct investment, state-owned enterprises",

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AU - Tang, Tingfeng

AU - Liu, Qiren

PY - 2022/9

Y1 - 2022/9

N2 - 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.

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.

KW - China

KW - anti-corruption campaign

KW - incentives and constraints

KW - outward foreign direct investment

KW - state-owned enterprises

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JO - World Economy

JF - World Economy

IS - 9

ER -

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

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