Confucius Institute Effects on China's Trade and FDI: Isn't it Delightful When Folks Afar Study Hanyu?

Posted: 6 Jul 2011

See all articles by Donald D. Lien

Donald D. Lien

University of Texas at San Antonio - College of Business - Department of Economics

Chang Hoon Oh

Simon Fraser University (SFU) - Beedie School of Business

W. Travis Selmier

Indiana University Bloomington - Department of Political Science

Date Written: May 25, 2011

Abstract

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

Suggested Citation

Lien, Donald and Oh, Chang Hoon and Selmier, W. Travis, Confucius Institute Effects on China's Trade and FDI: Isn't it Delightful When Folks Afar Study Hanyu? (May 25, 2011). International Review of Economics & Finance, Vol. 21, No. 1, 2012. Available at SSRN: https://ssrn.com/abstract=1879868

Donald Lien

University of Texas at San Antonio - College of Business - Department of Economics ( email )

6900 North Loop 1604 West
San Antonio, TX 78249
United States
210-458-4313 (Phone)
210-458-4308 (Fax)

Chang Hoon Oh (Contact Author)

Simon Fraser University (SFU) - Beedie School of Business ( email )

8888 University Drive
Burnaby, British Colombia V5A 1S6
Canada

W. Travis Selmier

Indiana University Bloomington - Department of Political Science ( email )

Bloomington, IN
United States

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