Confucius Institute, Belt and Road Initiative, and Internationalization

Hao Wang, Yonghui Han, Jan Fidrmuc and Dongming Wei

International Review of Economics & Finance, 2021, vol. 71, issue C, 237-256

Abstract: In this paper, we study the role of Confucius Institute in supporting internationalization of Chinese enterprises. Employing a panel dataset containing 66 Belt-Road countries and 75 non Belt-Road countries from 2006 to 2017, we find that Confucius Institute has had a positive effect on Chinese CMA in general and such an effect is stronger in Belt-Road countries, especially after the Belt and Road Initiative was launched in 2013. Our results suggest that the earlier the host country joins the Belt and Road Initiative, the stronger is the interactive effect of CI and Belt and Road Initiative. Moreover, we show that Confucius Classroom, a related program also positively affects the Chinese CMA in the context of Belt and Road Initiative. These findings are robust to controlling for the endogeneity of reverse causality and sample selection bias.

Keywords: Cultural institute; Institutions; Cultural distance; Belt and Road Initiative; Confucius Institute; Cross-border mergers and acquisitions (search for similar items in EconPapers)
JEL-codes: F23 Z1 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Confucius Institute, Belt and Road Initiative, and Internationalization (2021)
Working Paper: Confucius Institute, Belt and Road Initiative, and Internationalization (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:71:y:2021:i:c:p:237-256

DOI: 10.1016/j.iref.2020.09.011

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