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China's Outward Direct Investment in Africa

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  • Yin‐Wong Cheung
  • Jakob de Haan
  • Xingwang Qian
  • Shu Yu

Abstract

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.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of International Economics.

Volume (Year): 20 (2012)
Issue (Month): 2 (05)
Pages: 201-220

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Handle: RePEc:bla:reviec:v:20:y:2012:i:2:p:201-220

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References

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Citations

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Cited by:
  1. Busse, Matthias & Erdogan, Ceren & Muehlen, Henning, 2014. "China's Impact on Africa - the Role of Trade, FDI and Aid," IEE Working Papers 206, Institut fuer Entwicklungsforschung und Entwicklungspolitik, Ruhr-Universitaet Bochum.
  2. Sosa Andrés, Maximiliano & Nunnenkamp, Peter & Busse, Matthias, 2012. "What drives FDI from non-traditional sources? A comparative analysis of the determinants of bilateral FDI flows," HWWI Research Papers 114, Hamburg Institute of International Economics (HWWI).
  3. Shujie Yao & Pan Wang, . "Has China Displaced the Outward Investments of OECD Countries?," Discussion Papers 12/10, University of Nottingham, GEP.
  4. Catherine Co, 2014. "Chinese contractors in developing countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 150(1), pages 149-171, February.
  5. Beck, T.H.L. & Munzele Maimbo, S. & Faye, I. & Triki, T., 2011. "Financing Africa: Through the crisis and beyond," Open Access publications from Tilburg University urn:nbn:nl:ui:12-4758568, Tilburg University.
  6. Yao, Shujie & Wang, Pan, 2014. "Has China displaced the outward investments of OECD countries?," China Economic Review, Elsevier, vol. 28(C), pages 55-71.
  7. Michael Alfons Stemmer, 2012. "Assessing the relationship between Chinese capital flows and African debt sustainability," Post-Print dumas-00903799, HAL.
  8. Jaya Prakash Pradhan, 2011. "Emerging Multinationals: A Comparison of Chinese and Indian Outward Foreign Direct Investment," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(1), pages 113-148, April.
  9. Christian Milelli & Alice Sindzingre, 2013. "Chinese Outward Foreign Direct Investment in Developed and Developing Countries: Converging Characteristics?," EconomiX Working Papers 2013-34, University of Paris West - Nanterre la Défense, EconomiX.

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