[Full Picture] International friendship cities, regional government leaders, and outward foreign direct investment from China

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International friendship cities, regional government leaders, and outward foreign direct investment from China - ScienceDirect

Source: www-sciencedirect-com.ez.xjtlu.edu.cn

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Summary Analysis Research

Article summary:

1. This study investigates the role of international friendship cities (IFCs) as a sub-national diplomatic relation that links host country cities sharing similarities in fostering outward foreign direct investment (OFDI).

2. The institution-fostering view suggests that the greater extent to which local governments become involved in developing these relationships, the better they are able to employ this instrument to foster OFDI.

3. An analysis of 967 such relationships developed by 31 Chinese provincial governments with 102 countries supports the hypotheses, showing that regional government leaders have a significant and positive impact on regional OFDI.

Article analysis:

The article is generally reliable and trustworthy, providing evidence for its claims and exploring counterarguments. It provides an extensive theoretical background from both the institution-fostering view and inter-governmental relationship literature, which helps to support its argument. The authors also provide evidence from their empirical analysis of 967 international friendship city relationships developed by 31 Chinese provincial governments with 102 countries, which further strengthens their argument.

However, there are some potential biases in the article that should be noted. First, it does not explore any possible risks associated with developing such relationships or present any counterarguments against its claims. Second, it does not consider other factors that may influence OFDI decisions besides regional government involvement in developing international friendship city relationships. Third, it does not discuss how different types of regional government leaders may affect OFDI differently or how different types of international friendship city relationships may have different effects on OFDI decisions. Finally, it does not consider any potential differences between emerging economies and developed economies when discussing the effects of regional government involvement in fostering OFDI through international friendship city relationships.

Topics for further research:

Risks associated with international friendship city relationships Factors influencing OFDI decisions Effects of regional government leaders on OFDI Different types of international friendship city relationships Effects of regional government involvement on OFDI in emerging economies Effects of regional government involvement on OFDI in developed economies