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Policy, Institutional Fragility, and Chinese Outward Foreign Direct Investment: An Empirical Examination of the Belt and Road Initiative

Sutherland, D.; Anderson, J.R.; Bailey, N.; Alon, I.

Policy, Institutional Fragility, and Chinese Outward Foreign Direct Investment: An Empirical Examination of the Belt and Road Initiative Thumbnail


Authors

J.R. Anderson

N. Bailey

I. Alon



Abstract

The Belt and Road Initiative (BRI) is an important policy agenda undertaken by the Chinese government. We explore how the BRI – as well as an associated policy, the creation of Chinese overseas special economic zones – influences Chinese outward foreign direct investment (FDI). We find that host-country institutional fragility positively influences Chinese FDI volumes, and that the impact of institutional fragility on Chinese inward FDI to the host is amplified in the presence of the BRI. Specifically, BRI policy facilitates FDI to countries with weaker rule of law and less government accountability. We argue that, while the BRI may actively facilitate economic growth (i.e., via infrastructure development), and in turn aspects of human development, particularly in less-developed economies, its likely impacts on political rights may not be so promising.

Citation

Sutherland, D., Anderson, J., Bailey, N., & Alon, I. (2020). Policy, Institutional Fragility, and Chinese Outward Foreign Direct Investment: An Empirical Examination of the Belt and Road Initiative. Journal of International Business Policy, 3(3), 249-272. https://doi.org/10.1057/s42214-020-00056-8

Journal Article Type Article
Acceptance Date May 12, 2020
Online Publication Date Jul 1, 2020
Publication Date 2020-09
Deposit Date Jun 5, 2020
Publicly Available Date Jul 1, 2021
Journal Journal of International Business Policy
Print ISSN 2522-0691
Electronic ISSN 2522-0705
Publisher Palgrave Macmillan
Peer Reviewed Peer Reviewed
Volume 3
Issue 3
Pages 249-272
DOI https://doi.org/10.1057/s42214-020-00056-8
Public URL https://durham-repository.worktribe.com/output/1263177

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Copyright Statement
This is a post-peer-review pre-copyedit version of an article published in Journal of international business policy. The definitive publisher-authenticated version Sutherland, D., Anderson, J.R., Bailey, N. & Alon, I. (2020). Policy, Institutional Fragility, and Chinese Outward Foreign Direct Investment: An Empirical Examination of the Belt and Road Initiative. Journal of International Business Policy 3(3): 249-272 is available online at: https://doi.org/10.1057/s42214-020-00056-8




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