The effectiveness of government incentives for outward investment: The case of China's Belt and Road Initiative

Hangtian Xu, Fuqiang Yang and Wenzhuo Zheng

Contemporary Economic Policy, 2024, vol. 42, issue 3, 498-523

Abstract: Chinese government introduced a package of incentives to encourage enterprise internationalization under the 2013 Belt and Road Initiative. There is regional variation of this policy incentive, based on which, we examine its impact on listed firms' outward investment. The results evident resource misallocation in firms in specific industries which received incentives; instead of utilizing them for overseas investment, the beneficiary firms were directed toward increasing domestic investment. Contrarily, firms in industries that were not incentivized (restricted industries whose domestic development is not encouraged) were inclined to engage in overseas investment. We provide possible explanations.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/coep.12646

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:bla:coecpo:v:42:y:2024:i:3:p:498-523

Ordering information: This journal article can be ordered from
https://ordering.onl ... 5-7287&ref=1465-7287

Access Statistics for this article

Contemporary Economic Policy is currently edited by Brad R. Humphreys

More articles in Contemporary Economic Policy from Western Economic Association International Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().