Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2022.2044880
“Booster” or “blocker”? A study on the effect of cultural diversity on foreign direct investment
Wei Feng
Hang Yuan
Shuang Yang
Sažetak
In this paper, we investigate the characteristics and mechanisms
of cultural diversity that affect foreign direct investment (FDI)
using the panel data on provinces in China from 1999 to 2019
and find that, in general, cultural diversity inhibits FDI absorption.
However, this kind of adverse effect has a nonlinear threshold
characteristic. That is, when the population density reaches a certain
level or urbanization is controlled within a certain range, the
increase in cultural diversity can weaken the inhibitory effect on
FDI. Additionally, by exploring the mechanisms of cultural diversity
affecting FDI, we further find that cultural diversity inhibits
FDI mainly through the channels of inhibiting population density
and urbanization. The conclusions of this paper not only enrich
the theoretical research on FDI location from the perspective of
cultural diversity but also shed light on how to better attract FDI
to China and other countries, such as resolving cultural conflicts
and constructing an inclusive investment environment.
Ključne riječi
Cultural diversity; FDI; population density; urbanization
Hrčak ID:
302961
URI
Datum izdavanja:
31.3.2023.
Posjeta: 388 *