Public participation, investment networks, and China's outward FDI: Evidence from 58 countries along the belt and road

We estimate the effect of public participation in host countries on Chinese outward FDI (OFDI) for a panel of 58 countries along the Belt and Road from 2004 to 2019 in a Heckman selection model. Our model captures effects along both, extensive and intensive margins. We find that public participation, and the differences between public participation in home and host countries, significantly affect Chinese OFDI. Effects are sensitive to the presence of access to local investment networks and change after the introduction of the Belt and Road Initiative.