Corruption and Growth

Foreign Direct Investment

https://www.cmi.no/publications/file/3332-what-determines-chinese-outward-fdi.pdf

What determines Chinese outward FDI

http://www.rcmewhu.com/upload/file/20150528/20150528110332_7972.pdf

China's outward foreign direct investment: Location choice and firm ownership

We investigate the empirical determinants of China’s outward direct investment (ODI). It is found that China’s investments in developed and developing countries are driven by different sets of factors. Subject to the differences between developed and developing countries, there is evidence that a) both market seeking and resources seeking motives drive China’s ODI, b) the Chinese exports to developing countries induce China’s ODI, c) China’s international reserves promote its ODI, and d) the Chinese capital tends to agglomerate among developed economies but diversify among developing economies. Similar results are obtained using alternative ODI data. We do not find substantial evidence that China invests in African and oil-producing countries mainly for their natural resources.

/pdf/the-empirics-of-china-s-outward-direct-investment-3mesofedlw.pdf

The Empirics of China's Outward Direct Investment

. We investigate the empirical determinants of China's outward direct investment (ODI). It is found that China's investments in developed and developing countries are driven by different sets of factors. Subject to the differences between developed and developing countries, there is evidence that: (i) both market-seeking and resource-seeking motives drive China's ODI; (ii) Chinese exports to developing countries induce China's ODI; (iii) China's international reserves promote its ODI; and (iv) Chinese capital tends to agglomerate among developed economies but diversify among developing economies. Similar results are obtained using alternative ODI data. We do not find substantial evidence that China invests in African and oil-producing countries mainly for their natural resources.

https://www.econstor.eu/bitstream/10419/26666/1/599569905.PDF

Empirics of china's outward direct investment

Motivated by the observed international reserve hoarding behavior in the post-1997 crisis period, we explore the Mrs Machlup’s Wardrobe hypothesis and the related keeping up with the Joneses argument. It is conceived that, in addition to psychological reasons, holding a relatively high level of international reserves reduces the vulnerability to speculative attacks and promotes growth. A stylized model is constructed to illustrate this type of hoarding behavior. The relevance of the keeping up with the Joneses effect is examined using a few plausible empirical specifications and data from 10 East Asian economies. Panel-based regression results are suggestive of the presence of the Joneses effect, especially in the post-1997 crisis period.

http://faculty.buffalostate.edu/qianx/index_files/JonesesIR.pdf

Hoarding of International Reserves: Mrs Machlup's Wardrobe and the Joneses

We examine the empirical determinants of China’s outward direct investment (ODI) in Africa using an officially approved ODI dataset and a relatively new OECD-IMF format ODI dataset. China’s ODI is found responding to the canonical economic determinants that include the market seeking motive, the risk factor, and the resources seeking motive. It is also affected by the intensity of trade ties and the presence of China’s contracted projects. A host country’s natural resources have an impact on China’s decision on how much to invest in the country rather than on whether to invest in the country or not. China’s drive for Africa’s natural resources is mainly a recent phenomenon and, probably, became prominent after the “Going Global” policy adopted in 2002.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1824167_code849351.pdf?abstractid=1824167

China’s Outward Direct Investment in Africa

The empirical determinants of China's outward direct investment (ODI) in Africa are examined using an officially approved ODI dataset and a relatively new OECD–IMF format ODI dataset. China's ODI is found responding to the canonical economic determinants that include the market seeking motive, the risk factor, and the resources seeking motive. It is also affected by the intensity of trade ties and the presence of China's contracted projects. A host country's natural resources have an impact on China's decision on how much to invest in the country rather than on whether to invest in the country or not. China's drive for Africa's natural resources is mainly a recent phenomenon and, probably, became prominent after the “Going Global” policy adopted in 2002.

/pdf/china-s-outward-direct-investment-in-africa-1cksu0hnu7.pdf

Xingwang Qian

Papers

The Empirics of China's Outward Direct Investment

Empirics of china's outward direct investment

Hoarding of International Reserves: Mrs Machlup's Wardrobe and the Joneses

China’s Outward Direct Investment in Africa

China's Outward Direct Investment in Africa