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China’s outward foreign direct investment in energy sector: The role of “intimate” relations between countries

Based on the data of China’s outward foreign direct investment (OFDI) in energy sector to 133 countries from 2005 to 2014, this paper uses a gravity model to investigate the impact of “intimate” relations on China’s OFDI locations in energy sector. We find that the “intimate” relations have signific...

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Detalles Bibliográficos
Autores principales: Tan, Na, Chang, Liang, Guo, Rui
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Public Library of Science 2021
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8274856/
https://www.ncbi.nlm.nih.gov/pubmed/34252135
http://dx.doi.org/10.1371/journal.pone.0254199
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author Tan, Na
Chang, Liang
Guo, Rui
author_facet Tan, Na
Chang, Liang
Guo, Rui
author_sort Tan, Na
collection PubMed
description Based on the data of China’s outward foreign direct investment (OFDI) in energy sector to 133 countries from 2005 to 2014, this paper uses a gravity model to investigate the impact of “intimate” relations on China’s OFDI locations in energy sector. We find that the “intimate” relations have significant effects on China’s OFDI locations in energy sector, namely: bilateral senior leaders’ visits, institutional distance, genetic distance, and immigration. Holding other factors fixed, for each one more bilateral senior leaders’ visit between China and the host country, China’s OFDI in energy sector for the host country will increase by 5.44%. If the genetic distance from China and host country increases by 1%, China’s OFDI in energy sector will fall by 1.69%. For every 1% increase in the institutional distance between China and host country, China’s energy OFDI will decrease by 1.09%. For every 1% increase in a country’s immigration to China, China’s energy OFDI will increase by 0.46%. Further, after distinguishing developed and developing countries, we find that compared with developed countries, “intimate” relations have greater impacts on China’s energy OFDI in developing countries. Finally, based on the dominance analysis, considering China’s “intimate” relations with countries along the “Belt and Road” and current locations of China’s OFDI, we find that China should further expand energy investment in countries along the “Belt and Road”.
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spelling pubmed-82748562021-07-27 China’s outward foreign direct investment in energy sector: The role of “intimate” relations between countries Tan, Na Chang, Liang Guo, Rui PLoS One Research Article Based on the data of China’s outward foreign direct investment (OFDI) in energy sector to 133 countries from 2005 to 2014, this paper uses a gravity model to investigate the impact of “intimate” relations on China’s OFDI locations in energy sector. We find that the “intimate” relations have significant effects on China’s OFDI locations in energy sector, namely: bilateral senior leaders’ visits, institutional distance, genetic distance, and immigration. Holding other factors fixed, for each one more bilateral senior leaders’ visit between China and the host country, China’s OFDI in energy sector for the host country will increase by 5.44%. If the genetic distance from China and host country increases by 1%, China’s OFDI in energy sector will fall by 1.69%. For every 1% increase in the institutional distance between China and host country, China’s energy OFDI will decrease by 1.09%. For every 1% increase in a country’s immigration to China, China’s energy OFDI will increase by 0.46%. Further, after distinguishing developed and developing countries, we find that compared with developed countries, “intimate” relations have greater impacts on China’s energy OFDI in developing countries. Finally, based on the dominance analysis, considering China’s “intimate” relations with countries along the “Belt and Road” and current locations of China’s OFDI, we find that China should further expand energy investment in countries along the “Belt and Road”. Public Library of Science 2021-07-12 /pmc/articles/PMC8274856/ /pubmed/34252135 http://dx.doi.org/10.1371/journal.pone.0254199 Text en © 2021 Tan et al https://creativecommons.org/licenses/by/4.0/This is an open access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
spellingShingle Research Article
Tan, Na
Chang, Liang
Guo, Rui
China’s outward foreign direct investment in energy sector: The role of “intimate” relations between countries
title China’s outward foreign direct investment in energy sector: The role of “intimate” relations between countries
title_full China’s outward foreign direct investment in energy sector: The role of “intimate” relations between countries
title_fullStr China’s outward foreign direct investment in energy sector: The role of “intimate” relations between countries
title_full_unstemmed China’s outward foreign direct investment in energy sector: The role of “intimate” relations between countries
title_short China’s outward foreign direct investment in energy sector: The role of “intimate” relations between countries
title_sort china’s outward foreign direct investment in energy sector: the role of “intimate” relations between countries
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8274856/
https://www.ncbi.nlm.nih.gov/pubmed/34252135
http://dx.doi.org/10.1371/journal.pone.0254199
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