The Role of Psychic Distance on Outward Foreign Direct Investment

Indeed, China has grown largely in the recent years and has moved from a developing to emerging and heading its way to be a developed country. Moreover, Chinäs economic growth has massively increased defeating the world¿s largest economies US and UK, scoring highest investment by engaging in outward FDI. Therefore, the aim of this book is to investigate the role and impact of psychic distance on Chinese OFDI and examine whether a specific stimuli of psychic distance explains more why China invest in certain countries. There is a negative relationship between aggregate psychic distance and Chinese OFDI. Eventually, it is important to understand psychic distance from a specific context rather than universal one.