The Determinants of Location Choices of China’s ODI: Institutions, Taxation and Resources
Yongqin Wang, Julan Du, Kai Wang
作者简介
王永钦是复旦大学中国社会主义市场经济研究中心教授，复旦大学经济学博士，耶鲁大学博士后。研究兴趣：发展经济学，金融经济学。
Abstract China has become the third largest source of outward direct investment (ODI). This paper studies how institutions in the host countries affect the location choices of China’s ODI. Based on a deal-level sample from 2002–2011, this paper empirically tests how political institutions, political stability, government effectiveness, regulatory quality, rule of law and corruption control in the host countries affect the location choices of China’s ODI. On top of these institutional factors, we study the effects of tax evasion and natural resources in host countries, and their interactions with institutional factors. We find that political institutions in the host countries are not major concerns of the ODI, while government effectiveness, regulatory quality, and corruption control have significant effects on the locations of ODI. In addition, China’s ODI tends to avoid countries with strict legal systems. Tax evasion and resources are also major motives of China’s ODI. General institutional quality and tax evasion are substitutes in China’s ODI location decisions.
Keywords China, ODI, institutions, tax, resources
JEL Classification F21, F23, O53
