<abstract xmlns="http://www.w3.org/1999/xhtml"><p>In order to examine the impact of cultural and institutional distance on China’s OFDI towards the One Belt, One Road (OBOR) area, the paper selects 28 countries along The Belt and Road. The empirical results using panel data from 2006-2014 indicate that institutional distance is negatively correlated with China’s outward foreign direct investment (OFDI). At the same time, cultural distance interacts with bilateral trade, resulting in a “benefit of foreignness” effect.</p></abstract>

In order to examine the impact of cultural and institutional distance on China’s OFDI towards the One Belt, One Road (OBOR) area, the paper selects 28 countries along The Belt and Road. The empirical results using panel data from 2006-2014 indicate that institutional distance is negatively correlated with China’s outward foreign direct investment (OFDI). At the same time, cultural distance interacts with bilateral trade, resulting in a “benefit of foreignness” effect.

How Do Cultural and Institutional Distance Affect China’s OFDI towards the OBOR Countries?

TalTech Journal of European Studies

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

In order to examine the impact of cultural and institutional distance on China’s OFDI towards the One Belt, One Road (OBOR) area, the paper selects 28...

How Do Cultural and Institutional Distance Affect China’s OFDI towards the OBOR Countries?

Published Online: Jul 08, 2017

Page range: 24 - 42

DOI: https://doi.org/10.1515/bjes-2017-0003

Keywords
cultural distance, institutional distance, OBOR, OFDI

© by Lin Zhang

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

How Do Cultural and Institutional Distance Affect China’s OFDI towards the OBOR Countries?

Published Online: Jul 08, 2017

Page range: 24 - 42

DOI: https://doi.org/10.1515/bjes-2017-0003

Keywordscultural distance, institutional distance, OBOR, OFDI

© by Lin Zhang

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
cultural distance, institutional distance, OBOR, OFDI