The Pitfalls of Using Foreign Direct Investment Data to Measure Chinese Multinational Enterprise Activity

• DOI: 10.1017/s0305741014001490
• Publication Date: 2014-11-28T13:53:50Z
• Authors: Dylan Sutherland; John Anderson
• Keywords: Sample (material)

Abstract The growth of Chinese multinational enterprises (MNE) has stimulated great interest in their outward foreign direct investment (FDI) strategies, particularly among academics business and management studies. To date, however, serious methodological shortcomings plague empirical studies these disciplines. Specifically, the vital issue how MNEs use route FDI via tax havens offshore financial centres is not adequately dealt with. These practices have created large geographical, industrial composition volume biases data. Using a sample 100 MNEs, we illustrate biases, examine implications for understanding MNE activity.