TITLE:
Institutional Distance, Bilateral Political Relations and the Success or Failure of Chinese Enterprises’ Foreign Direct Investment
AUTHORS:
Wei Qian
KEYWORDS:
Institutional Distance, Bilateral Political Relations, The Nature of Corporate Property Right
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.7 No.11,
November
20,
2019
ABSTRACT: However, among global foreign investment, the failure rate of Chinese enterprises’ foreign direct investment has remained high. By analyzing the tracking data of China’s large-scale foreign investment in 2005-2016, this paper studies the relationship between institutional distance, bilateral political relations and the success or failure of Chinese enterprises’ foreign direct investment. The results show that institutional distance and bilateral political relations have a significant impact on the success or failure of foreign direct investment, and bilateral political relations have a negative regulatory effect on the relationship between institutional distance and the success or failure of foreign investment. The nature of corporate property rights will also play an important role in the regulation of bilateral political relations.