The Feedback Effect of Economic Conditions on Outward FDI Policy
Date Issued
2021-05-18
Author(s)
Abstract
This paper studies the role of developments in firm internationalization, industrial catch-up, and macroeconomic home country stability on reactive outward foreign direct investment (OFDI) policymaking in an emerging market context. Drawing on theoretical policy change approaches of political science, I contend that the size of the developments that risk China’s economic stability is an essential factor for causing reactive OFDI policymaking. Studying the period of 1999 to 2019, this paper finds that while drastic changes on the firm, industry and macroeconomic level lead to reactive OFDI policymaking, it is only on the firm level where continuous change matters for policymakers.
Subjects
FDI Policies
;
Outward FDI
;
Home country government
;
Policy change
;
Industrial development
;
Macroeconomic stability
;
China
Institution
Type
book
Page number
55
Secondary publication
No
Language
English
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Name
20210516_Utesch-Xiong_paper2_incl_suppl material.pdf
Size
1.23 MB
Format
Adobe PDF
Checksum
(MD5):0a0c60a39a181c62f7a7cac735f2e4cd