Host-country governance and foreign direct investment by Chinese state-owned multinational enterprises in Africa: The moderating role of Chinese development aid

Roger Fon, Fragkiskos Filippaios, Carmen Stoian

Research output: Contribution to journalArticlepeer-review

Abstract

The aim of our study is to investigate how Chinese development aid affects the relationship between host country governance and foreign direct investment (FDI) by Chinese state-owned multinational enterprises (SOMNEs) in Africa. We utilise a firm-level greenfield cross-sectional FDI data for 26 African countries, for the period 2003-2014, to test our central claim that Chinese development aid will have a moderating effect on the relationship between governance and Chinese FDI. Examining the average marginal effects (AMEs) of our governance variable across the range of development aid values, we find evidence that Chinese development aid negatively moderates the relationship between host country governance and FDI by Chinese SOMNEs.
Original languageEnglish
Pages (from-to)1-36
Number of pages36
JournalJournal of International Business Policy
Publication statusIn preparation - 1 Sept 2019

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