A Policy Perspective on Outward Foreign Direct Investment by Chinese State-Owned Enterprises

Steven Globerman ()

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2016, vol. 11, issue 4, 537-547

Abstract: A growing number of developed country governments in recent years have adopted a hostile attitude towards foreign direct investments undertaken in their markets by state-owned enterprises (SOEs), the latter often based in China. The broad reason for this hostility is the belief that state-owned enterprises pursue non-commercial objectives with resulting damage to host economies. This paper argues that the empirical evidence shows SOEs are increasingly exhibiting market-owned behavior. Furthermore, any adverse consequences of non-commercial behavior are likely to be realized primarily by the SOEs themselves.

Keywords: state-owned enterprises; China; acquisitions; non-commercial objectives; unfair competition (search for similar items in EconPapers)
JEL-codes: F23 F50 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:fec:journl:v:11:y:2016:i:4:p:537-547

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