Abstract
The rapid proliferation of Chinese Outbound Direct Investment (ODI) has over the years been attracting worldwide attention due to its overwhelming presence and distinct characteristics which stands in contrast to other experiences from before. This paper examines these issues in the context of Sri Lanka focusing especially on operations of the State-Owned Enterprises (SOEs) and the Private Enterprises (PEs) of China. The study rests on data gathered from Chinese enterprises per structured questionnaire and interviews with functionaries thereof. The evidence presented here highlights the vital role played by the Chinese state and the Chinese business clusters in facilitating the stage for soft-landing for Chinese ODI in Sri Lanka. The findings also reveal the vertical and horizontal strategies for expansion by Chinese SOEs and PEs in the promotion of Chinese entrepreneurship in Sri Lanka.
Highlights
Since the dawn of the new millennium, the increased presence of the Chinese Outbound Direct Investment (ODI) in the global stage has been attracting worldwide attention
According to Alon and others (2014) the Chinese ODI has never been determined by the locational advantage in labour offered by the host countries with which it had entered bi-lateral or multilateral agreements of economic cooperation; e) The Chinese enterprises in overseas territories are likely to be less reliant on host country institutions (Li-Ying et al, 2013) yet they are more likely to form specific links with each other amongst the Chinese enterprises which contributed for the proliferation of the Chinese investment in the host country as well as in the region (Li et al, 2017; Peng, 2012)
The paper drew upon data and information gathered by way of structured questionnaire and unstructured interviews from representatives from firms operating in Sri Lanka
Summary
Since the dawn of the new millennium, the increased presence of the Chinese Outbound Direct Investment (ODI) in the global stage has been attracting worldwide attention. According to Alon and others (2014) the Chinese ODI has never been determined by the locational advantage in labour offered by the host countries with which it had entered bi-lateral or multilateral agreements of economic cooperation; e) The Chinese enterprises in overseas territories are likely to be less reliant on host country institutions (Li-Ying et al, 2013) yet they are more likely to form specific links with each other amongst the Chinese enterprises which contributed for the proliferation of the Chinese investment in the host country as well as in the region (Li et al, 2017; Peng, 2012) These observations show a strong contrast between ODI facilitated by China and by firms emanating from economies of the industrial west. For the remainder of the sample, the stimuli factors for investment have been different from those determinants valid for most other MNEs from the industrialised economies (Wei, 2010)
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