Assessing the effects of policies on China’s outward foreign direct investment

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Colleges, School and Institutes


This paper discusses the determinants of China’s outward foreign direct investment (OFDI) with a special focus on the role of government policy. In particular, we investigate the types of policies that are most influential in promoting OFDI. Our main contribution is to analyse, for the first time, China’s OFDI policies by means of quantitative indicators. We refine policies definitions and distinguish between Regulation Policies, Service Policies, Promotion Policies and Supervision Policies, and we develop a methodology for collecting, screening and coding policies; then we create new indices to capture different types of policies. We find that Regulation Policies, Service Policies and the general attitude of the government have significant effects on China’s OFDI at the national level.


Original languageEnglish
Article number101818
JournalInternational Business Review
Early online date12 Mar 2021
Publication statusE-pub ahead of print - 12 Mar 2021


  • China, Foreign direct investment policy, Institutional theory, Outward foreign direct investment, Quantitative analysis