Author(s)

Wei Qian

Business School, Nanjing Normal University, Nanjing, China.

However, among global foreign investment, the failure rate of Chinese enterprises’ foreign direct investment has remained high. By analyzing the tracking data of China’s large-scale foreign investment in 2005-2016, this paper studies the relationship between institutional distance, bilateral political relations and the success or failure of Chinese enterprises’ foreign direct investment. The results show that institutional distance and bilateral political relations have a significant impact on the success or failure of foreign direct investment, and bilateral political relations have a negative regulatory effect on the relationship between institutional distance and the success or failure of foreign investment. The nature of corporate property rights will also play an important role in the regulation of bilateral political relations.

Institutional Distance, Bilateral Political Relations, The Nature of Corporate Property Right

Qian, W. (2019) Institutional Distance, Bilateral Political Relations and the Success or Failure of Chinese Enterprises’ Foreign Direct Investment. Open Journal of Social Sciences, 7, 198-214. doi: 10.4236/jss.2019.711014.