Cross border investment by state-owned enterprises

Valentina Burrai, Luciano Giua and Kateryna Perepechay

No 96, OECD Science, Technology and Industry Policy Papers from OECD Publishing

Abstract: The paper analyses data on state-owned enterprises as cross-border investors and takes a first step towards analysing their investment characteristics since 2000. It shows that the number of cross-border investments by state-owned enterprises was overall small, with most originating from the People’s Republic of China (hereafter “China”), and suggests that the investment preferences of state-owned enterprises may fuel excess capacity in the steel sector. This is because state-owned enterprises display a preference for building new capacity over acquiring existing capacity when investing abroad, and a preference for investment destinations with volatile demand growth. Data also suggest that state-owned enterprises might be more likely to undertake domestic capacity closures after a cross-border investment, which is likely influenced by recent policies introduced to curb excess capacity in China. Conversely, the data offer insufficient evidence regarding the link between cross-border investment by state-owned enterprises and capacity outcomes in target jurisdictions.

Date: 2020-12-15
New Economics Papers: this item is included in nep-cna and nep-int
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1787/ec8ea202-en (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oec:stiaac:96-en

Access Statistics for this paper

More papers in OECD Science, Technology and Industry Policy Papers from OECD Publishing Contact information at EDIRC.
Bibliographic data for series maintained by ().