The internationalisation of Chinese firms has attracted attention worldwide although most of Chinese MNEs are still in their early stage of internationalisation. Chinese firms internationalisation has unique characteristics due to their home country s unique political environment, culture and economic structure. This thesis aims to investigate the implications of both of short-term stock market performance and long-term operating performance of outward foreign direct investment (OFDI) by Chinese firms. Drawing on signalling theory and the institution-based view, the thesis firstly examines the extent of stock market reactions to the announcement of cross-border merger and acquisition (M&A) deals from a financial perspective, based on an event study of a sample of Chinese firms during the period 2000-2012. The findings indicate that Chinese firms cross-border M&As result in a positive stock market reaction. The shareholders of Chinese firms that acquire a target firm in a host country with a low level of political risk gain higher cumulative abnormal returns than those firms targeting companies in countries with a high level of political risk. However, the shareholders of Chinese state-owned enterprises experience lower abnormal returns compared with those of Chinese privately owned firms when engaging in cross-border M&A deals. The thesis further examines the impact of M&As on Chinese firms post-acquisition operating performance by integrating organisational learning theory with the institution-based view. The findings indicate that firms with serial cross-border M&As achieve better performance than those engaged in first-time cross-border M&As, and those with horizontal M&As perform better than those carrying out vertical M&As. The positive effects of acquisition experience and horizontal acquisitions on the post-acquisition performance of Chinese acquiring firms are reinforced by the institutional quality and language similarity of host countries. Finally, this thesis investigates from a management perspective how Chinese MNEs adopt different management strategies (e.g. expatriates and subsidiary autonomy) to respond to environmental challenges and improve the performance of overseas subsidiaries. Drawing on the resource dependence theory, this thesis examines the indirect effects of expatriates on subsidiary performance via subsidiary autonomy based on a survey sample of Chinese MNEs. The findings show that an increase in expatriates reduces the level of subsidiary autonomy and thus negatively affects subsidiary performance. This study also finds that the institutional quality of host countries reinforces the negative impact of expatriates on subsidiary autonomy, but reduces the importance of the latter on subsidiary performance.

This thesis explores three important factors that have been central to the pursuit of economic growth, particularly in the developing and emerging economies. These are Outward Foreign Direct Investment, Reverse Technology Spillovers, and Total Factor Productivity. Chapter 2 examines whether India’s Outward Foreign Direct Investment (OFDI) pattern is consistent with Dunning’s Investment Development Path (IDP) sequence using macro data over the period 1980-2010. It tests whether the level of development - proxied by GDP per capita - is the main factor explaining OFDI, and augments the IDP by studying other major determinants such as exports, Inward FDI, human capital, and R&D using the Cointegration and Error Correction Model techniques. The results support the main proposition of the IDP, but also highlight the importance of other factors. We also find that OFDI granger-causes R&D, suggesting a possibility of reverse technology spillover. Chapter 3 analyses the ‘feedback effect’ of Foreign Direct Investment (FDI) on Total Factor Productivity (TFP) growth of emerging economies via technology spillovers across borders. We study the effect of R&D spillovers resulting from Outward FDI flows from 18 emerging economies into 34 OECD countries over the 1990-2010 period, comparing the impact with that of spillovers resulting from Inward FDI flows. The result confirms that FDI enhances productivity growth in the home country; however the impact is much larger when R&D-intensive developed countries invest in the emerging economies than the other way round. The country-specific bilateral elasticities also support this outcome. Finally, Chapter 4 studies twofold stages of OFDI – determinants and effects – at a disaggregated level, using data on OFDI undertaken by 34 countries in 10 major sectors of US during 1990-2010. The main aim of this essay is to provide micro evidence in support of outcomes of Chapter 2 & 3. The first stage concentrates on the driving forces of OFDI to understand its macroeconomic determinants, by distinguishing the factors into 3 broad categories: country specific, sector specific and time specific variables. In the second stage, we then study how the home countries benefit from the OFDI that they undertake in the US, in terms of the impact of induced reverse technology spillovers. This stage entails the creation of a foreign R&D capital term as the weighted average of R&D intensity of US with the OFDI undertaken by the home countries into US. It investigates both direct and interaction effects of such R&D spillovers on the growth of home country’s TFP. The analysis also considers a lag structure to allow for a time lag in the transfer and effect of foreign R&D capital. Results for both the stages confirm the set hypotheses.

Academic literature has increasingly shown escape foreign direct investment (FDI) to be a strategic motive used by firms investing abroad to diversify their risk to their home market. Internationalisation allows firms to mitigate the risk of being based in uncertain environments characterised by underdeveloped institutions and economic weakness (institutional voids), which are seen as comparative disadvantages. By expanding abroad, firms reduce their dependence on the home market for their revenues and profits. To date, most existing research has explored the characteristics, drivers and motivations for outbound FDI from emerging economies, but has paid relatively less attention to the economic consequences of such investments. The aim of this study is to gain an understanding of the economic consequences of escape FDI. Understanding the economic consequences of escape FDI will enable managers of South African multinational firms (MNEs) to develop and implement internationalisation strategies that create value, as measured by an increase in market capitalisation, for the firm. Quantitative, explanatory research methods were adopted in order to gain new insights into the economic consequences of escape FDI. The study adopted a longitudinal, multi-industry design and was deductive in nature. The population was 85 firms, which were investigated over a 5-year period, with an interval between 2013 and 2018. The data was analysed using descriptive statistics followed by confirmatory regression analysis. The key finding was that South African MNEs who invested in emerging markets, particularly in multiple host countries in Africa whilst adopting a “portfolio approach” to their international investments, delivered exceptional performance, creating significant value in the process. The secondary finding was that individual firms who either invested in emerging markets or developed markets created and destroyed value evenly, confirming existing literature that firms are heterogeneous and that a firms place in time and space, and thus context, matters fundamentally. The findings from this research add to the extant literature in the field of international business by introducing the “portfolio approach” to international investment strategy and performance. The implications for management is that firms need to understand their ownership advantages in designing and implementing international investment strategies because escape based FDI and related economic performance can have profound direct consequences for the firm itself, but indirectly on the wider community as a whole. / Mini Dissertation (MPhil)--University of Pretoria, 2019. / Gordon Institute of Business Science (GIBS) / MPhil (International Business) / Unrestricted

O presente trabalho investiga empiricamente os determinantes de investimentos chineses e brasileiros no exterior e faz uma comparação entre a China e o Brasil no sentido de determinantes e características gerais de investimento no exterior, como o volume, a escolha de destinação. Em base de uma revisão teórica da área de investimento no exterior no primeiro artigo, testamos empiricamente, no secondo artigo, as hipóteses sugeridas pela teoria de Paradigma Eclético do Dunning e pelas outras literaturas nesta área pelo modelo de painel, utilizando os dados oficiais do Brasil e da China coletados no período entre 2006 e 2012. Encontramos os mesmos resultados de variáveis principais, os quais indicam que investimentos no exterior de ambos dois países tem motivação significativa de buscar mercado, eficiência e exportar capital intelectual, mas a busca de recurso natural é uma motivação insignificativa para os dois países. Encontramos também os diferentes resultados em variáveis controladas entre dois países. / This study investigates the determinants of Chinese and Brazilian outward foreign direct investment (OFDI) and conducts a comparison between China and Brazil in terms of FDI determinants and general FDI features like volume, location choice. Based on an extensive and in-depth theoretical review of main FDI theories in first article, we, in second article, test empirically our hypotheses suggested by Dunning\'s Eclectic Paradigm theory and others FDI literature through a panel data model, using Brazil and China official data collected between 2006 and 2012. We find same results of main variables that both Chinese and Brazilian OFDI have significant motivations of market-seeking, efficiency-seeking and asset-exporting (contrary to hypothesis), but resource-seeking OFDI is insignificant for both countries. We also find their difference in results of control variables.

The privileges of integration with the global economy have led developing countries to embark on a path of liberalisation and globalisation. This resulted in rapid growth of inward and outward foreign direct investment from developing countries. In the last two decades there is an increasing trend of outward FDI from developing countries to both developed and developing countries. This dissertation focuses on exploring the literature on outward FDI from developing countries, and internationalisation process of developing country multinationals which are considered to be carriers to investment across international borders. The study has examined the two main strands of literature on outward FDI from developing countries – determinants of outward FDI and internationalisation process. Findings of the systematic review show that there is a dearth of studies in this area of research. Except a number of studies on China and countries of East and South East Asia, there is very limited evidence on outward FDI from developing countries. There is a set of studies on Africa that examine South-South investment flows. Studies on other major developing countries are either non-existent or lack in comprehensiveness. Some studies resulted in contradictory findings about the determinants of outward FDI. This raises the question of sensitivity of variables across geographical locations and time periods, which has not been researched before. Studies on outward FDI also do not make a clear distinction between South-South and South-North FDI flows. Other aspects like sovereign wealth funds and commodity price boom have been ignored in the literature. It is important to investigate outward FDI flows from the major developing economies because of its sheer scope to contribute to academic literature, its policy implications, and also because of its potential to bring development to some of the most impoverished parts of the world.

O presente trabalho investiga empiricamente os determinantes de investimentos chineses e brasileiros no exterior e faz uma comparação entre a China e o Brasil no sentido de determinantes e características gerais de investimento no exterior, como o volume, a escolha de destinação. Em base de uma revisão teórica da área de investimento no exterior no primeiro artigo, testamos empiricamente, no secondo artigo, as hipóteses sugeridas pela teoria de Paradigma Eclético do Dunning e pelas outras literaturas nesta área pelo modelo de painel, utilizando os dados oficiais do Brasil e da China coletados no período entre 2006 e 2012. Encontramos os mesmos resultados de variáveis principais, os quais indicam que investimentos no exterior de ambos dois países tem motivação significativa de buscar mercado, eficiência e exportar capital intelectual, mas a busca de recurso natural é uma motivação insignificativa para os dois países. Encontramos também os diferentes resultados em variáveis controladas entre dois países. / This study investigates the determinants of Chinese and Brazilian outward foreign direct investment (OFDI) and conducts a comparison between China and Brazil in terms of FDI determinants and general FDI features like volume, location choice. Based on an extensive and in-depth theoretical review of main FDI theories in first article, we, in second article, test empirically our hypotheses suggested by Dunning\'s Eclectic Paradigm theory and others FDI literature through a panel data model, using Brazil and China official data collected between 2006 and 2012. We find same results of main variables that both Chinese and Brazilian OFDI have significant motivations of market-seeking, efficiency-seeking and asset-exporting (contrary to hypothesis), but resource-seeking OFDI is insignificant for both countries. We also find their difference in results of control variables.

經過30年的經濟改革，中國已成為國際直接投資的熱門地區。聯合國貿易發展委員會（UNCTAD）的報告中也指出，中國在2007年僅次於美國，成為全球吸引外資金額第二高的國家。然而，隨著中國總體國力大增，近幾年來，中國對外直接投資的腳步也加緊了起來。外資的流入不但促進了中國的經濟成長，也給中國企業學習如何對外直接投資，提供了絕佳的機會。 相較於中國吸引外資方面（Inward FDI）的研究，中國對外直接投資（Outward FDI）的議題較少引起研究者注意。然而，中國對外直接投資對於全球經濟有其重要性，研究影響中國對外直接投資因素更具有理論與實質意義，因為中國既投資於未開發國家和開發中國家，也同時在已開發國家中投資，這是一般後進國家少有的特質。因此，本研究將利用2003-2007年中國各省市地區對外直接投資的追蹤資料（panel data），搭配固定效果模型（fixed effect model）的估計，希望透過本研究分析影響中國對外直接投資的決定因素。 實證結果發現，影響中國對外直接投資的決定因素中，顯著的變數有各省市國內生產毛額、各省市每人國內生產毛額、各省市職工平均工資、各省市國有企業產值佔工業總產值比，以及工業總產值佔國內生產毛額比。而其餘的變數如各省市貿易開放程度、匯率與借款利率皆不顯著，反映了其皆非中國對外直接投資時所考量的決定因素。不過，整體來說中國對外直接投資有逐年成長的趨勢。

本研究主要先探討國內、外對外投資之相關文獻，再以經濟部統計處於2007年所實施的「製造業對外投資實況調查」問卷資料為分析對象，分別由廠商特性、產業特性及投資特性等3方面，運用probit model進行估計，來分析我國製造業廠商在從事對外投資活動後，對國內產品生產規模所產生的影響。經本研究實證發現，就廠商特性而言，「廠商規模」及「研發支出總額」為影響國內產品生產規模擴大的重要因素。在產業特性方面，則以「產業型態」及「對外投資地區」為重要影響因素，而若以投資特性來看，屬擴張型對外投資動機的「當地市場發展潛力大」、由台灣所提供之「原料進貨來源比率」及「零組件與半成品進貨來源比率」等因素為重要影響因素。 / After reviewing literature on outward foreign direct investment, this research conducts an empirical research based on 2007 statistical data from Ministry of Economic Affairs in Taiwan. We employ probit model to analyze the impacts of outward foreign direct investment on output of manufacturing industry in Taiwan. The empirical results show that the ‘firm size’ and ‘R&D expenditure’ categorized into firm characteristics, and ‘type of industry’ and ‘investment area’ classified into industry characteristics are statistically significant. Moreover, the expansionary FDI measured by ‘high potential of local market’, ‘rate of raw material purchased from Taiwan’ and ‘rate of components and semi-finished product purchased from Taiwan’ are also statistically significant.

海外事業行銷方式會影響其經營績效之良窳，本研究主要目的在於探討海外事業行銷方式之決定因素，根據經濟部2007年製造業對外投資實況調查，分別由公司特性、產業特性、地主國特性及營運特性四個構面進行探討，運用二階段Multinomial logit model進行實證分析。經本研究第一階段實證發現，投資地區數、組織型態、最主要投資地區、國內生產毛額及技術來源是影響廠商選擇海外事業行銷方式之重要因素，第二階段再進一步討論選擇母公司行銷、子公司行銷及混合行銷三種自行行銷方式之決定因素，研究結果發現投資年限、投資地區數、海外營業額占比、組織型態、行業類別、經營方式、市場競爭激烈、技術來源、當地銷售占比、外銷接單大陸出貨比率及回銷比率皆為重要影響因素，實證結果供台灣製造業廠商海外事業行銷方式之參考。 / The overseas marketing strategy can affect firm’s performance. The main purpose of this study is to explore the determinants of overseas marketing strategy. Using data from the Ministry of Foreign Affairs’ 2007 survey of foreign investment in manufacturing, this empirical study applies a two-stage multinomial logit model to analyze the issue based on the following four dimensions: company characteristics, industry characteristics, operating characteristics and characteristics of the host country. For the first stage regarding the oversea marketing strategy decision, the empirical results show that the number of investment areas, organization type, key investment areas, and those areas’ GDP and source of technology are important. For the second stage of the parent company marketing decision, a subsidiary marketing and mixed marketing approach, the three kinds of self-marketing study, include investment period, the number of investment areas, overseas sales contribution, the organization type, industry type, mode of operation, market competition, technology source, local sales contribution, export orders delivered by mainland ratio, and reverse ratio are prominent.

中國於2000年首次明確提出企業「走出去」戰略，鼓勵並支持具比較優勢之國有與民營企業投資海外市場，使中國企業得以藉由對外直接投資活動，以國家機器作為後盾進入全球主要經濟市場，不僅可影響外國企業之經營運作、提升技術、掌握通路、獲取所需資源等，亦能有效結合經濟與政治實力，逐步豐厚中國之綜合國力，期能達到提升國際地位與成為世界大國之目標。 中國雖引進市場經濟體制，惟政治體制仍屬社會主義制度，由共產黨決定政府運作與經濟制度，國家機器對市場之干預程度遠較資本主義國家既深且廣；本論文為進一步瞭解中國的國家機器如何主導企業對外直接投資之運作、發展狀況及其影響力，係以國際政治經濟學之國家資本主義作為研究途徑，分析中國國家機器在其對外直接投資活動的作用及影響力，並以英國學者John Dunning的投資發展階段論，將中國對外直接投資之成效置於全球脈絡中進行比較分析，俾能歸納發現中國對外直接投資模式的特色。 經比較分析中國整體及企業個案之對外直接投資發展狀況與影響力，可以發現，中國對外直接投資能力逐漸增強，已具經濟自主能力，刻正由邊陲國家逐漸邁向核心國家。整體而論，中國對外直接投資發展模式與世界主要國家確有所差異：相同之處在於，中國與各國之對外直接投資活動均與國內經濟結構具高度正相關，亦即經濟發展到達一定水準後，才會出現頻密的對外直接投資活動及成果；相異之處在於，各國之民營企業已具國際競爭力並在對外直接投資活動扮演重要角色，惟中國的國有企業較民營企業更具對外直接投資之優勢與能力，投資動機主要係依據國家政策及經濟發展需要，而中國的民營企業則因規模較小，國際競爭力仍有待提升，目前在全球市場尚未形成可觀的影響力。 / For the very first time in 2000, China proposed a clear strategy to have corporations ‘going out,’ encouraging and supporting competent state-owned and private enterprises to invest overseas market. With the backup of the state, this policy enables Chinese corporations to get into the global economic market by means of outward foreign direct investment. In this way, they can affect the operation and management of foreign enterprises so as to advance their own technologies, control channels, and to acquire necessary resources. Moreover, they may combine economic power with political strength effectively, enhancing the comprehensive national power of China gradually so that China may increase its international status to become a superpower in the world. Though market economy is introduced in China, its political system, socialism, remains the same. The Communist government makes the decision concerning its operation and the economic system. In other words, the intervention of the state in the market is furtherer and wider than that of capitalist countries. In order to understand how the state controls enterprises in terms of the operation of outward foreign direct investment, its development, and the influence, the study adopts state capitalism of international political economy as the approach to analyze the function and influence of the state government on outward foreign direct investment. Moreover, the study is aimed at concluding the characteristics of Chinese pattern of outward foreign direct investment by adopting the British economist, John Dunning’s, the theory of investment－development cycle to compare and analyze the outcome of Chinese outward foreign direct investment in the scope of the whole world. After comparing and analyzing how the china overall and enterprises case about development and influence of outward foreign direct investment, it is discovered that China’s ability of outward foreign direct investment is increasing. China has the ability of economic autonomy and is transforming from a country of periphery to a core country. Overall, the development pattern of China’s outward foreign direct investment is indeed different from other major countries. The similarity lies in that there is a significantly positive relationship between the outward foreign direct investment of China and other countries and their domestic economic structure. That is to say, when the development of economy has reached a certain level, frequent outward foreign direct investment and its effects will then appear. On the other hand, the difference lies in that private enterprises in other countries are internationally competent and play an important role in outward foreign direct investment. However, in China, state-owned enterprises have more advantages and capabilities than private enterprises in terms of outward foreign direct investment. The motivation of investment is determined by national policy and the demands of economic development. Moreover, due to the scale being small, private enterprises in China need to improve their international competitiveness. Therefore, they don’t exert as much influence in the global market.