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Effects of Government Economic Policy on Outward Foreign Direct Investment: Experience from China and the EU

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Abstract

The last 30 years are characterized by rapid growth of global investment flows. Initially, the main investors were mainly from developed countries, whereas the importance of investors from emerging market economies has considerably increased during the last decade. At the same time, the importance of the State-Owned Enterprises (SOEs), both deriving from emerging market economies as well as developed economies, has significantly increased in outward foreign direct investment (Sauvant and Strauss, 2012). The purpose of this chapter is to compare the institutional and policy support for outward FDI in China and the EU. On the one hand, we aim to do this by evaluating the support for outward FDI provided by emerging and developed economies, and on the other hand, we analyse the effects of the emergent protectionist tendencies that lead to blocking inward FDI.

We would like to thank Tze-Wei Ng for her contribution on Chinese Home Country Fiscal Measures database.

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© 2015 Witold Wilinski and Xiaoxin Li

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Wilinski, W., Li, X. (2015). Effects of Government Economic Policy on Outward Foreign Direct Investment: Experience from China and the EU. In: Marinova, S. (eds) Institutional Impacts on Firm Internationalization. Palgrave Macmillan, London. https://doi.org/10.1057/9781137446350_4

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