Abstract
Emerging-economy enterprises (EEEs) engage in strategic asset-seeking FDI (SAS FDI) for different reasons than traditional FDI. Previous studies suggest that a firm’s internal learning capability (absorptive capacity) and increased foreign competition (industry openness) might play a role in encouraging SAS FDI. Our study of recent Chinese outbound FDI projects confirms that increased absorptive capacity and increased industry openness make EEEs more likely to engage in SAS FDI. However, there is also a negative interaction effect, suggesting that knowledge spillovers from technology imports make EEEs somewhat less likely to engage in SAS FDI overseas.
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