Prof. Wu Xianming’s Paper Selected as the Top1 Chinese Paper in International Investment among 2016 Global Economics Top 10 Papers

According to the news released from the editorial department ofThe Yearbook of World Economyof the Chinese Academy of Social Sciences, "The Motivation of Chinese Enterprises' Outbound FDI: A Comparative Study of Reverse Investment and Forward Investment" (China's Industrial Economy, No. 1, 2016), a paper written by Professor Wu Xianming and his Master student Huang Chuntao, from the School of Economics and Management, was selected as Top 10 Papers in World Economy in 2016, ranking top 1 Chinese paper on international investment. It was also included inThe 2017 Yearbook of World Economy.

The rapid rise of China’s outbound foreign direct investment has not only changed the layout of global transnational corporations, but also challenged the existing theory of transnational corporations.

This paper selects the panel data of China’s outbound FDI in 55 host countries (including 29 developed countries and 26 developing countries) from 2003 to 2012, and makes a comparative study on the motivation of Chinese enterprises' reverse investment and forward investment. The study finds that in both reverse investment and forward investment, Chinese enterprises have strong motivation in seeking market and natural resources.

This shows that the internationalization of Chinese enterprises is based on the unique advantages of ownership. In developing countries, Chinese enterprises also face competition from multinational corporations of developed countries. Their competitive advantages should focus on their adaptability to the host country's environment, their understanding of consumer needs and the provision of cost-effective products and services.

The Yearbook of World Economy, a journal of the national level, was first published in 1979 and was sponsored by the Institute of World Economics and Politics of the Chinese Academy of Social Sciences and published by China Social Sciences Publishing House. More than 2000 leading experts on world economy from Mainland China took part in the review and selection of top papers this time, and the selections were made based on experts votes, literature references and publication impact factors.