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Title: Institutions and FDI location choice: The role of cultural distances
Authors: Du, J.
Lu, Y. 
Tao, Z.
Keywords: Culture distance
Economic institutions
FDI location choice
Issue Date: Jun-2012
Source: Du, J.,Lu, Y.,Tao, Z. (2012-06). Institutions and FDI location choice: The role of cultural distances. Journal of Asian Economics 23 (3) : 210-223. ScholarBank@NUS Repository.
Abstract: Using an extensive data set on foreign invested enterprises (FIEs) in the Chinese mainland, we compare the sensitivities of the location choice of foreign direct investment (FDI) from six major source countries/areas (Hong Kong, Taiwan, US, EU, Japan and Korea) toward the variation in the strength of economic institutions across China's regions. It is found that FIEs from the source countries/areas that are culturally more remote from China often exhibit a stronger aversion to regions with weaker economic institutions. Moreover, this pattern is often more salient when FDI takes the form of fully-owned enterprises (FOEs) than when it takes the form of joint ventures (JVs). © 2011 Elsevier Inc..
Source Title: Journal of Asian Economics
ISSN: 10490078
DOI: 10.1016/j.asieco.2010.11.008
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