Determinants of the Confucius Institute establishment

• We investigate the determinants of the Confucius Institute (CI) establishment.
• Trade, geographical distance, developing country, and English speaking are found to be important factors whereas GDP and population are marginally significant.
• After controlling for endogeneity, FDI, geographical distance, and English speaking remain to be the important factors.
• The results suggest that the CI network will have greater global impacts when new or more CIs are established in non-English speaking developing countries.

This paper investigates the determinants of the Confucius Institute (CI) establishment. It is shown that FDI, trade, geographical distance, developing country, and English speaking are important factors whereas GDP and population are marginally significant. Overall, CIs are under-represented in a non-English, distant, less wealthy developing country that trades infrequently with China. The results suggest that the CI network will have greater global impacts when new or more CIs are established in non-English speaking developing countries. However, potential mutual benefits between China and these under-representing countries should be preconditions in order to attract CIs in the countries.