TY - JOUR
T1 - Varieties of state capital
T2 - What does foreign state-led investment do in a globalized world?
AU - Babić, Milan
AU - Dixon, Adam D.
AU - Fichtner, Jan
N1 - Funding Information:
The author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: This project has received funding from the European Research Council (ERC) under the European Union’s Horizon 2020 research and innovation program (grant agreement number 758430).
Publisher Copyright:
© The Author(s) 2022.
PY - 2023/10
Y1 - 2023/10
N2 - Existing studies have scrutinized the rise of states as global owners and investors, yet we still lack a good understanding of what state investment does in a globalized economy, especially in host states. Comparative capitalisms research has analyzed foreign state investment as a potential source of patient capital for coordinated and mixed-market economies. However, this patient capital framework cannot explain the recent surge of protectionist sentiments, even among the “good hosts” of state-led investment. Therefore, we go beyond the patient capital argument and develop a novel framework centered on the globalized nature of foreign state investment. We create and empirically illustrate a novel typology based on different modes of cross-border state investment—from financial to strategic—and different categories of host states. Our results provide a new pathway to study the rise and effects of cross-border state investment in the 21st century.
AB - Existing studies have scrutinized the rise of states as global owners and investors, yet we still lack a good understanding of what state investment does in a globalized economy, especially in host states. Comparative capitalisms research has analyzed foreign state investment as a potential source of patient capital for coordinated and mixed-market economies. However, this patient capital framework cannot explain the recent surge of protectionist sentiments, even among the “good hosts” of state-led investment. Therefore, we go beyond the patient capital argument and develop a novel framework centered on the globalized nature of foreign state investment. We create and empirically illustrate a novel typology based on different modes of cross-border state investment—from financial to strategic—and different categories of host states. Our results provide a new pathway to study the rise and effects of cross-border state investment in the 21st century.
KW - internationalization
KW - multinational firms
KW - political economy
KW - varieties of capitalism
UR - http://www.scopus.com/inward/record.url?scp=85142749818&partnerID=8YFLogxK
U2 - 10.1177/10245294221139524
DO - 10.1177/10245294221139524
M3 - Article
AN - SCOPUS:85142749818
SN - 1024-5294
VL - 27
SP - 663
EP - 684
JO - Competition and Change
JF - Competition and Change
IS - 5
ER -