This contribution attempts to shed light on the rise of direct investment flows from ‘thirdworld’ to ‘first-world’ countries and aims to explain why and how third world companies are currently investing in advanced economies. To analyze this trend, we chose to focus on China as it has piled up large amounts of foreign currency reserves and shown a firm political commitment towards the support of Chinese outbound investment on a worldwide basis. Even though the bulk of Chinese direct investment has been directed to developing countries — especially in Latin America and Africa over the past few years— more mature economies — particularly in Europe since 2003 — have now emerged as a new destination for Chinese investment. Europe is therefore the focus of this paper which draws on a wide range of data from various sources. The issue is addressed empirically so as to provide a comprehensive understanding of Chinese investors’ strategies and entry modes.
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Paper provided by University of Paris West - Nanterre la Défense, EconomiX in its series EconomiX Working Papers with number
2007-5.
Find related papers by JEL classification: F14 - International Economics - - Trade - - - Country and Industry Studies of Trade F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
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