Next Article in Journal
Continuous Seasonal and Large-Scale Periglacial Reservoir Sedimentation
Previous Article in Journal
A Multistage Distribution-Generation Planning Model for Clean Power Generation under Multiple Uncertainties—A Case Study of Urumqi, China
Article Menu
Issue 9 (September) cover image

Export Article

Open AccessArticle
Sustainability 2018, 10(9), 3264; https://doi.org/10.3390/su10093264

Harmony in Diversity: Can the One Belt One Road Initiative Promote China’s Outward Foreign Direct Investment?

1
,
2,* , 3
and
1
1
School of Business Administration, Shanghai Lixin University of Accounting and Finance, Shanghai 201209, China
2
Department of Economics, Shanghai Lixin University of Accounting and Finance, Shanghai 201209, China
3
Economic Studies, University of Dundee School of Business, Dundee, DD1 4HN, UK
*
Author to whom correspondence should be addressed.
Received: 12 July 2018 / Revised: 30 August 2018 / Accepted: 6 September 2018 / Published: 12 September 2018
(This article belongs to the Special Issue Services Sector Trade and Investment)
Full-Text   |   PDF [999 KB, uploaded 12 September 2018]   |  

Abstract

This paper investigates the effect of the One Belt One Road (OBOR) initiative on China’s outward foreign direct investment (OFDI) using a dataset of all host countries for the period of 2010–2015. The employed econometric technique combines a difference-in-differences estimator with matching techniques. The results show that China’s OFDI in OBOR countries is about 40% higher than in non-OBOR countries. After the initiative, the OFDI from China increases by 46.2% in OBOR countries. However, after controlling for the heterogeneity across OBOR and non-OBOR countries using the matching approach, the significance of the increasing effect caused by the OBOR initiative disappears. We also find the OBOR initiative diminishes the resource-seeking motivation and improves the market-seeking motivation of China’s OFDI. Our results cast doubts on the infrastructure-led and institution-based strategy of the OBOR initiative, but support the boosting effect of the OBOR initiative on institutional cooperation and cultural convergence. Thus, the OBOR initiative is a sustainable continuation and development of the long tradition of economic, institutional, and cultural convergence with the OBOR countries, rather than a temporary policy shock. View Full-Text
Keywords: One Belt One Road (OBOR); outward foreign direct investment (OFDI); cultural distance; institutional distance; treatment effect models One Belt One Road (OBOR); outward foreign direct investment (OFDI); cultural distance; institutional distance; treatment effect models
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Kang, L.; Peng, F.; Zhu, Y.; Pan, A. Harmony in Diversity: Can the One Belt One Road Initiative Promote China’s Outward Foreign Direct Investment? Sustainability 2018, 10, 3264.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top