Chinese Investments in Latin America: An Analysis of Host Country Determinants

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Title: Chinese Investments in Latin America: An Analysis of Host Country Determinants
Authors: Quer, Diego | Rienda, Laura | Andreu, Rosario
Research Group/s: Dirección Estratégica, Conocimiento e Innovación en una Economía Global (DECI-GLOBAL)
Center, Department or Service: Universidad de Alicante. Departamento de Organización de Empresas
Keywords: China | Foreign Direct Investment | FDI | Latin America | Host country factors
Knowledge Area: Organización de Empresas
Issue Date: 2019
Publisher: Universitat de Barcelona
Citation: Journal of Evolutionary Studies in Business. 2019, 4(2): 45-67. doi:10.1344/JESB2019.2.j060
Abstract: Despite cultural differences and political instability, Latin America is already the second main destination of China’s outward foreign direct investment (OFDI), only behind Asia. Although natural resource-seeking has been the traditional motivation for Chinese firms doing business in Latin America, market-seeking is also becoming an increasingly important driver. The aim of this study is to investigate the influence of host country factors on the location decisions of Chinese multinational enterprises (MNEs) in Latin America. We analyzed a sample of 106 investments carried out by 52 Chinese MNEs in 10 Latin American countries between 2005 and 2017. Our findings indicate that cultural distance negatively influences location choice by Chinese MNEs, while political risk has no influence. Moreover, market-seeking motivations and good diplomatic relations between China and the host country also matter.
ISSN: 2385-7137
DOI: 10.1344/JESB2019.2.j060
Language: eng
Type: info:eu-repo/semantics/article
Rights: This is an Open Access article distributed under the terms of the Creative Commons Attribution-Non-Commercial-No Derivatives License (, which permits non-comercial re-use and distribution, provided the original work is properly cited, and is not altered or transformed in any way.
Peer Review: si
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Appears in Collections:INV - DECI-GLOBAL - Artículos de Revistas

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