{"id":19364,"date":"2014-06-11T17:20:17","date_gmt":"2014-06-11T21:20:17","guid":{"rendered":"https:\/\/www.bu.edu\/pardee\/?page_id=19364"},"modified":"2014-06-11T17:20:17","modified_gmt":"2014-06-11T21:20:17","slug":"chinaofdiworkingpaper","status":"publish","type":"page","link":"https:\/\/www.bu.edu\/pardee\/research\/global-economic-governance-2\/chinaofdiworkingpaper\/","title":{"rendered":"\"GEGI_BUbrick_noBU_300x50\"<\/a>"},"content":{"rendered":"
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Exporting National Champions:<\/ins><\/b><\/h1>\n

China\u2019s OFDI Finance in Comparative Perspective<\/b><\/h1>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

GEGI Working Paper Series<\/h2>\n

By Amos Irwin and\u00a0<\/strong>Kevin P. Gallagher\u00a0<\/b>
\nJune 2014<\/p>\n

Download here:\u00a0Exporting National Champions: China\u2019s OFDI Finance in Comparative Perspective<\/a><\/p>\n

Abstract<\/strong><\/p>\n

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Scholars have compared China\u2019s liberalization, inward FDI attraction, and export promotion policies to those of its \u201cAsian Miracle\u201d predecessors to assess China as a \u2018developmental state.\u2019 We build on that literature by drawing a new but similar comparison: the extent to which Chinese development banks have financed the globalization of China\u2019s \u2018national champion\u2019 firms.\u00a0 We focus on the role of state finance in promoting China\u2019s outward foreign direct investment (OFDI) in comparative perspective. In order to answer this research question, we created a database of Chinese finance for OFDI and compared our results to the existing literature on previous developmental states.\u00a0 We estimate the total value of China\u2019s OFDI finance from 2002-2012 at $140 billion. As a percentage of total OFDI, China\u2019s lending is roughly three times 55% higher than Japan, the previous global leader in OFDI finance. Like Japan and South Korea at earlier developmental stages, China\u2019s lending also goes overwhelmingly toward natural resource acquisition, though to a much greater degree. Unlike Japan or Korea, we find that China\u2019s market entry has more to do with developing project expertise and supporting exports than it does with tariff-hopping or outsourcing industries that are fading on the mainland. We identify two major reasons for China\u2019s high (31%) ratio of OFDI lending to total OFDI. First, China has a greater incentive to give OFDI loans than Japan or Korea ever did because its borrowers are state-owned so it can more easily dictate how they use the money. Second, China has a greater capacity to give OFDI loans because it has significantly higher savings and foreign exchange reserves than Japan and Korea, both today and especially during equivalent developmental stages.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Exporting National Champions: China\u2019s OFDI Finance in Comparative Perspective GEGI Working Paper Series By Amos Irwin and\u00a0Kevin P. Gallagher\u00a0 June 2014 Download here:\u00a0Exporting National Champions: China\u2019s OFDI Finance in Comparative Perspective Abstract Scholars have compared China\u2019s liberalization, inward FDI attraction, and export promotion policies to those of its \u201cAsian Miracle\u201d predecessors to assess China as […]<\/p>\n","protected":false},"author":7753,"featured_media":0,"parent":15551,"menu_order":10,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"_links":{"self":[{"href":"https:\/\/www.bu.edu\/pardee\/wp-json\/wp\/v2\/pages\/19364"}],"collection":[{"href":"https:\/\/www.bu.edu\/pardee\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.bu.edu\/pardee\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/pardee\/wp-json\/wp\/v2\/users\/7753"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/pardee\/wp-json\/wp\/v2\/comments?post=19364"}],"version-history":[{"count":1,"href":"https:\/\/www.bu.edu\/pardee\/wp-json\/wp\/v2\/pages\/19364\/revisions"}],"predecessor-version":[{"id":19366,"href":"https:\/\/www.bu.edu\/pardee\/wp-json\/wp\/v2\/pages\/19364\/revisions\/19366"}],"up":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/pardee\/wp-json\/wp\/v2\/pages\/15551"}],"wp:attachment":[{"href":"https:\/\/www.bu.edu\/pardee\/wp-json\/wp\/v2\/media?parent=19364"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}