Survival of outward FDI in China’s food industry

Ciao Ru Jian, Daisuke Takahashi, Tsai Yu Chang, Chung Hsuan Wei

    Research output: Contribution to journalArticlepeer-review

    1 Citation (Scopus)

    Abstract

    Purpose – The purpose of this paper is to investigate the stability of Taiwanese and Japanese outward foreign direct investment (FDI) in China’s food industry and explore the Cox proportional hazard model to examine the factors that may affect the duration and stability of FDI. Design/methodology/approach – The data used in this study come from firm-level survey conducted in different Chinese provinces. Based on the data, survival analysis on the determinants of FDI in China’s food industry was constructed and used for analysis. Findings – Estimated results from the study show that the survival rates are higher for Taiwanese FDI than for Japanese FDI from 2003 to 2012. In addition, empirical results show a positive relationship between research and development (R&D) expenditure/domestic investment and the hazard rate, implying that Japanese investments with greater R&D expenditure and domestic investment would decrease the survival of FDI in China. On the contrary, Taiwanese investments with greater R&D expenditure and domestic investment would enhance the survival of FDI in China. Originality/value – It could be the first that survival comparisons across countries are conducted together in the relevant FDI studies of the food industry. For robustness, survival rates for ten major provinces and cities where affiliates conducted FDI in the food industry are examined.

    Original languageEnglish
    Pages (from-to)1237-1253
    Number of pages17
    JournalBritish Food Journal
    Volume118
    Issue number5
    DOIs
    Publication statusPublished - 2016 May 3

    Keywords

    • China
    • Cox hazard model
    • FDI
    • Survival analysis

    ASJC Scopus subject areas

    • Food Science

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