Confucius Institute Effects on China's Trade and FDI: Isn't it Delightful When Folks Afar Study Hanyu?
Posted: 6 Jul 2011
Date Written: May 25, 2011
This paper employs gravity models to analyze the influence of Confucius Institutes (CI) on outward trade and FDI flows from China. We find significant increases in both Chinese exports and outward FDI flows to developing countries through establishment and operation of CIs, but little impact on the same flows to developed countries. In addition, CIs command stronger impacts on FDI than on outward trade.
Keywords: Confucius Institute, trade, foreign direct investment, China, soft power
JEL Classification: F10, F21, F59
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