Neuro-fuzzy network based analysis between the “Introduction of foreign-invested shares”, the “belt and road initiative” and the “international competitiveness of Chinese local state-owned enterprises”

Abstract

Stimulated by the “Belt and Road” Initiative (BRI), Chinese enterprises are participating in the markets of Central and Eastern European Countries (CEECs). With the Chinese local SOEs from 2007 to 2017 as samples, this paper empirically verified the impact of the introduction of foreign-invested shares (foreign shares for short) on the international competitiveness of these enterprises, as well as the mediation effect of the BRI strategy. In this paper, we propose neuro -fuzzy network based correlation analysis and empirical analysis found that there’s a significant positive correlation between the introduction of foreign shares and the international competitiveness of Chinese local SOEs, that is, compared with local SOEs without foreign shares, those with foreign shares enjoy stronger international competitiveness when participating in the Central and Eastern European market; after the mediation effect of BRI has been taken into consideration, the introduction of foreign shares further strengthened the positive impact on the international competitiveness of these enterprises. This is because the BRI has significantly promoted the participation of Chinese SOEs in the Central and Eastern European market.