ASIA PACIFIC JOURNAL OF TOURISM RESEARCH

How geographic, cultural, and institutional distances shape location choices of China’s OFDI in tourism? – An empirical study on B&R countries

Deng, Taotao; Hu, Yukun; Yang, Yang

Abstract

This paper examines how bilateral distances shape Chinese enterprises’ outward foreign direct investment (OFDI) in tourism in Belt and Road (B&R) countries. The results indicate that while geographic distance is not a key factor explaining the location choice of Chinese tourism OFDI in B&R countries, cultural distance hinders this location choice in a linear and monotonic way. Chinese enterprises prefer B&R countries with a short institutional distance from China for OFDI in tourism to avoid the outsider disadvantage. Moreover, market scale is found to be a moderating factor influencing the impacts of various distances on tourism OFDI location choice.

Keywords

Belt and Road initiative; China; OFDI; tourism investment; Silk Road Action Plan; multiple distances; geographic distance; cultural distance; institutional distance; location choice

Research topic

Tourist Flows and Location

Research method

Econometrics

Geographic area

Global

Additional links for this paper

ResearchGate

Publisher Website

Web of Science

HOW TO CITE

Deng, T., Hu, Y., and Yang, Y. (2019). How geographic, cultural, and institutional distances shape location choices of China’s OFDI in tourism—An empirical study on B& R countries. Asia Pacific Journal of Tourism Research, 24(8), 735-749

Additional Reads

2026

Comparative Advantage

Theories and Models in Tourism and Hospitality Research

2026

Customer gratitude and employee work behaviors

TOURISM MANAGEMENT

2026

Together through thick and thin: How does the survival of neighboring restaurants matter?

INTERNATIONAL JOURNAL OF HOSPITALITY MANAGEMENT