Abstract

http://ssrn.com/abstract=1963642
 


 



Revisiting the OLI Paradigm: The Institutions, the State, and China's OFDI


Hao Liang


Singapore Management University, Lee Kong Chian School of Business; Tilburg University, CentER

Bing Ren


Nankai School of Business

Haikun Zhu


Nankai University - School of Economics

November 23, 2011

CESifo Working Paper Series No. 3642

Abstract:     
We propose a modified theoretical framework based on John Dunning’s classical OLI paradigm in the international business literature to analyze Chinese firms’ fast-growing and aggressive outward foreign direct investment (OFDI). In particular, from an institutional perspective, we suggest a 'state-stewardship' view to incorporate state institutions into the OLI paradigm. This paper supplements our earlier work (Ren, Liang, and Zheng, 2011) on identifying the formal institutional determinants of Chinese firms’ OFDI motivations and strategies, by further looking at the impact of direct and indirect policies, and the OFDI state-controlled financial intermediaries. Under our modified OLI framework we also examine the potential concerns on China’s state-backed OFDI and its implication on long-term sustainability.

Number of Pages in PDF File: 34

Keywords: outward foreign direct investment, institutions, state-stewardship view, OLI paradigm

JEL Classification: F230, H810, M480


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Date posted: November 23, 2011  

Suggested Citation

Liang, Hao and Ren, Bing and Zhu, Haikun, Revisiting the OLI Paradigm: The Institutions, the State, and China's OFDI (November 23, 2011). CESifo Working Paper Series No. 3642. Available at SSRN: http://ssrn.com/abstract=1963642

Contact Information

Hao Liang (Contact Author)
Singapore Management University, Lee Kong Chian School of Business ( email )
469 Bukit Timah Road
Singapore 912409
Singapore
HOME PAGE: http://business.smu.edu.sg/faculty/profile/130396/LIANG-Hao
Tilburg University, CentER ( email )
Netherlands
Bing Ren
Nankai School of Business ( email )
94 Weijin Road, Nankai District
Tianjin, Tianjin 300071
China
Haikun Zhu
Nankai University - School of Economics ( email )
Wenjin Road
Tianjin, TianJin 300071
China
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