The degree of internationalization of Chinese Multinationals along the belt and road initiative countries

Abstract

This study assesses the degree of internationalization of Chinese firms along the Belt and Road initiative countries. Most of the extant studies of the Belt and Road initiative have been qualitative, and where there have been quantitative studies, they have usually been at the aggregate level, and only a handful have used firm-level data to study initiative. Using a composite measure of the degree of internationalization, DOIBRI, that composed of variables capturing the performance, structural and attitudinal dimensions of internationalization, comparative analysis of State-owned enterprises and privately owned enterprises turned up counter-intuitive results. Firstly, given that state ownership could be positively associated with the degree of internationalization of firms and because of the significance of the Belt and Road initiative, we expected the State-owned enterprises to dominate the DOIBRIrankings. We assessed the firms, and contrary to expectations, privately owned firms had a higher average degree of internationalization. Furthermore, we expected both state-owned enterprises and privately-owned enterprises to have similar levels of psychic dispersion. However, state-owned enterprises were more psychically dispersed. Suggesting that along the belt and road countries, the advantages of state ownership of Chinese multinationals may be attenuated.