Document Type
Working Paper
Publication Date
2015
College/Unit
Chambers College of Business and Economics
Document Number
15-45
Department/Program/Center
Economics
Abstract
This paper uses a panel data of China's outward foreign direct investment (OFDI) from 2004-2012 to investigate the influence of Confucius Institute on China's OFDI. We find that Confucius Institute, as a comprehensive platform for China's foreign cultural exchange, has a significant positive effect on China’s OFDI. Interestingly, the positive effect can be reduced with larger cultural difference and can be increased in host countries with lower institutional quality. Correspondingly, we find that Confucius Institute’s impact on China’s OFDI is more obvious in host countries with smaller cultural difference or lower institutional quality.
Digital Commons Citation
Xu, Chensheng; Yao, Feng; and Zhang, Fan, "An Investigation of Confucius Institute’s Effects on China’s OFDI via Cultural Difference and Institutional Quality" (2015). Economics Faculty Working Papers Series. 178.
https://researchrepository.wvu.edu/econ_working-papers/178