IDEAS home Printed from https://ideas.repec.org/a/taf/rjapxx/v28y2023i3p1251-1285.html
   My bibliography  Save this article

The impact of Chinese Outward Foreign Direct Investment on the comparative advantage of the Belt and Road countries

Author

Listed:
  • Yanyan Sun
  • Kunling Zhang
  • Song Zhang

Abstract

The present study investigates the impact of Chinese outward foreign direct investment (OFDI) on the comparative advantage (CA) of the Belt and Road countries (BRCs). This study uses the national-level panel data of Chinese OFDI flowing into 62 BRCs and disaggregated sectoral data from BRCs categorised by factor intensity from 2003 to 2017 and applies dynamic system generalised method-of-moments (GMM) estimators with instrument variables. The findings suggest that Chinese OFDI has a strong positive effect on the CA of BRCs in natural resource-intensive industries, a relatively weak positive effect on the CA of BRCs in labour-intensive textile, garment and footwear sectors, and a negative effect on the CA of BRCs in other labour-intensive sectors. Additionally, Chinese OFDI has a negative effect on the CA of BRCs in capital- and technology-intensive sectors, but the impact is positive in high-income BRCs. In contrast, non-Chinese OFDI shows a negative effect on the CA of BRCs in the natural resource industry, while non-Chinese OFDI significantly promotes labour-intensive industry and capital technology-intensive industry. Under the Belt and Road Initiative, BRCs are required to facilitate or prioritize Chinese investment in sectors complying with their own development strategies and resource endowments.

Suggested Citation

  • Yanyan Sun & Kunling Zhang & Song Zhang, 2023. "The impact of Chinese Outward Foreign Direct Investment on the comparative advantage of the Belt and Road countries," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 28(3), pages 1251-1285, July.
    • Handle: RePEc:taf:rjapxx:v:28:y:2023:i:3:p:1251-1285
    DOI: 10.1080/13547860.2021.1950114
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13547860.2021.1950114
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13547860.2021.1950114?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dragomirescu-Gaina, Catalin & Fassas, Athanasios P. & Philippas, Dionisis, 2024. "A Chinese clout on energy exports some countries cannot shake off," Energy Economics, Elsevier, vol. 134(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rjapxx:v:28:y:2023:i:3:p:1251-1285. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjap .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.