Abstract
This study examined several hypotheses regarding the location choice of foreign direct investment from emerging economies. Using a sample of 156 Chinese firms' first FDI in the analysis, this study found that firms with strong resource-seeking motivations would enter into countries with low level economy development. And firms with strong strategic asset-seeking motivations would enter into countries with high level economy development. However, with superior firm-specific advantages - R&D capabilities, firms having strong strategic asset-seeking motivations would choose to locate FDI in less developed countries. The results suggest that both asset- exploitation and asset-exploration are predictive of the emerging economies' firms' location choice of investment.
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