This paper explores political factors in the determination of China's State-Owned Enterprises' (SOEs') outward foreign direct investment (OFDI). We examine China's anti-corruption campaign as a political intervention into economic decision making. Based on reliable data on China SOEs' OFDI, we find that the anti-corruption campaign launched by the Chinese Communist Party in 2013Â has had a negative influence on the growth of SOEs' OFDI. Further statistical analysis suggests that the negative impact of the anti-corruption campaign on SOEs' OFDI growth is greater when the anti-corruption effort is stronger, the SOE more monopolistic, and the institutional quality of the host state greater.
|Journal||The World Economy|
|Publication status||Published - 2022|