Location Choice Of FDI And Multinational Performance: Empirical Evidence From Chinese Transnational Corporations

The Globalization has now affected more profoundly a wider set of countries, and the emerging countries are increasingly gaining the importance in the globalization. China is one of the most important emerging countries, and plays the most important roles on outflows FDI from emerging countries. Therefore, there is an increasing emphasis on the nature and extent of benefits and costs Chinese transnational corporations could gain from the overseas markets. The success of location choice of overseas investment is a motive of a firm's strategy, and directly affects international production flows, leading to performance improvement. The research on Chinese transnational corporations is now becoming an important and forward looking topic, and deserves more serious consideration from business leaders and academics alike, and has a policy implication in terms of theoretical and empirical framework to the policy of "Go Global".This thesis is firmly rooted in the conceptual and theoretical literature on foreign direct investment, aims to analyze the features of Chinese transnational corporations. Drawing on a large data set of Chinese firms, the main focus of the empirical analysis is to find a clear and positive correlation between multinational performance and foreign direct investment of Chinese transnational corporations, and to analyze the magnitude of performance improvement gained from developed and developing countries location, respectively, and to suggest the location choice of FDI for Chinese transnational corporations in order to gain high performance. Overall, the results from micro-firm level analysis suggest that, in the case of Chinese transnational corporations, the investment in developing countries is likely to lead a bigger improvement on multinational performance, relative to the investment into developed countries.