 Does central bank independence matter for the location choices of Chinese firms’ foreign investments?Yanping Zhao, Qing Chen and Jakob de Haan International Business Review, 2023, vol. 32, issue 4 Abstract: Based on the eclectic paradigm and institutional theory, we hypothesize that Chinese firms prefer to invest in host countries having a central bank with a level of independence that is comparable to that of the Chinese central bank. Using data of Chinese listed firms from 1999 to 2013, our logit models suggests that all components of central bank independence, namely personnel, policy and financial independence, and priority for price stability, have a significant negative impact on the foreign investment location choices of Chinese firms. The impact of central bank independence on location choices is bigger for non-state-owned enterprises than for state-owned enterprises. The investment location choices of non-state-owned enterprises are negatively associated with the distance between central bank independence in China and that in host countries, while for state-owned enterprises this distance has no effect. Keywords: China; Outward foreign direct investment; Location choices; Central bank independence (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:iburev:v:32:y:2023:i:4:s0969593122001202 Ordering information: This journal article can be ordered from DOI: 10.1016/j.ibusrev.2022.102092 Access Statistics for this article International Business Review is currently edited by P. Ghauri More articles in International Business Review from Elsevier |
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