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Academic Journal of Business & Management, 2022, 4(16); doi: 10.25236/AJBM.2022.041605.

The impact of continuous and discontinuous host country risk on the location choice of Chinese enterprises' OFDI


Daxiao Yang

Corresponding Author:
Daxiao Yang

Business School, University of Shanghai for Science and Technology, Shanghai, China


Research on outwards foreign direct Investment (OFDI) has presented consistent evidence that Country risk has a significant impact on the choice of location for OFDI by firms. Using the overseas wholly-owned subsidiaries of Chinese listed enterprises between 2002 and 2020 as a sample, this study investigates the impact of different types of risk on the location choice of Chinese enterprises' OFDI, and the moderating effect of the state-owned status of enterprises on this impact. The empirical results show that both continuous and discontinuous risks in the host country have a suppression effect on Chinese enterprises' OFDI. This study also explores the moderating effect of internationalization experience and statehood on the suppression effect.


Country risk, Continuous risk, Discontinuous risk, Internationalization experience, State-owned enterprise

Cite This Paper

Daxiao Yang. The impact of continuous and discontinuous host country risk on the location choice of Chinese enterprises' OFDI. Academic Journal of Business & Management (2022) Vol. 4, Issue 16: 26-31. https://doi.org/10.25236/AJBM.2022.041605.


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