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China's Outward FDI: An Industry-level Analysis of Host Country Determinants

Author

Listed:
  • Alessia Amighini
  • Roberta Rabellotti
  • Marco Sanfilippo

Abstract

We provide an empirical analysis of host country determinants of Chinese outward FDI for the period 2003 to 2008, using data disaggregated by country and industry. We want to assess the relevance of market-seeking, resource-seeking and strategic asset seeking motivations suggested by the theory on FDI determinants. Our results show that only FDI in manufacturing is attracted by market seeking motivations. As expected, resource seeking is an important motivation for Chinese FDI in resource related sectors, which usually refers to countries with political fragile environments. Strategic asset seeking motivations are relevant for both manufacturing and services.

Suggested Citation

  • Alessia Amighini & Roberta Rabellotti & Marco Sanfilippo, 2011. "China's Outward FDI: An Industry-level Analysis of Host Country Determinants," CESifo Working Paper Series 3688, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_3688
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    References listed on IDEAS

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    Cited by:

    1. Toure Mamoudou & Cédric Achille Mbeng Mezui, 2017. "Working Paper 271 - Facteurs déterminants des IDE en Afrique," Working Paper Series 2388, African Development Bank.
    2. Alessia Amighini & Claudio Cozza & Elisa Giuliani & Roberta Rabellotti & Vittoria Scalera, 2015. "Multinational enterprises from emerging economies: what theories suggest, what evidence shows. A literature review," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(3), pages 343-370, September.
    3. Cristina Castelli & Davide Castellani, 2013. "The internationalisation of r&d: sectoral and geographic patterns of cross-border investments," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2013(1), pages 127-143.
    4. Marco Mele & Angelo Quarto, 2017. "A Gravitational Model for Estimate the Determinants of Outward Foreign Direct Investment of China," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 1-5.
    5. Marco Mele & Floriana Nicolai, 2015. "On the determinants of foreign direct investment in emerging countries: the case of China," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - Italian Review of Economics, Demography and Statistics, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 69(1), pages 39-46, January-M.
    6. You, Kefei, 2015. "What drives China’s outward FDI? A regional analysis," BOFIT Discussion Papers 16/2015, Bank of Finland, Institute for Economies in Transition.
    7. Vito Amendolagine & Claudio Cozza & Roberta Rabellotti, 2015. "Chinese and Indian Multinationals: A Firm-Level Analysis of their Investments in Europe," Global Economic Review, Taylor & Francis Journals, vol. 44(4), pages 452-469, December.
    8. Curran, Louise & Lv, Ping & Spigarelli, Francesca, 2017. "Chinese investment in the EU renewable energy sector: Motives, synergies and policy implications," Energy Policy, Elsevier, vol. 101(C), pages 670-682.
    9. Gippner, Olivia & Torney, Diarmuid, 2017. "Shifting policy priorities in EU-China energy relations: Implications for Chinese energy investments in Europe," Energy Policy, Elsevier, vol. 101(C), pages 649-658.
    10. Gao, Lan & Liu, Xiaohui & Zou, Huan, 2013. "The role of human mobility in promoting Chinese outward FDI: A neglected factor?," International Business Review, Elsevier, vol. 22(2), pages 437-449.
    11. Christian Dreger & Yun Schüler-Zhou & Margot Schüller, 2017. "Determinants of Chinese direct investments in the European Union," Applied Economics, Taylor & Francis Journals, vol. 49(42), pages 4231-4240, September.
    12. Giuliani, Elisa & Gorgoni, Sara & Günther, Christina & Rabellotti, Roberta, 2014. "Emerging versus advanced country MNEs investing in Europe: A typology of subsidiary global–local connections," International Business Review, Elsevier, vol. 23(4), pages 680-691.
    13. Amighini, Alessia A. & Franco, Chiara, 2013. "A sector perspective on Chinese outward FDI: The automotive case," China Economic Review, Elsevier, vol. 27(C), pages 148-161.
    14. Bastian Gawellek & Jingjing Lyu & Bernd Süssmuth, 2016. "Did Chinese Outward Activity Attenuate or Aggravate the Great Recession in Developing Countries?," CESifo Working Paper Series 5735, CESifo Group Munich.
    15. repec:bof:bofitp:urn:nbn:fi:bof-201505061170 is not listed on IDEAS
    16. Padilla, Ramón & Gomes Nogueira, Caroline, 2015. "Determinants and home-country effects of FDI outflows: Evidence from Latin American countries," Estudios y Perspectivas – Sede Subregional de la CEPAL en México 166, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    17. You, Kefei & Solomon, Offiong Helen, 2015. "China's outward foreign direct investment and domestic investment: An industrial level analysis," China Economic Review, Elsevier, vol. 34(C), pages 249-260.
    18. Süssmuth, Bernd & Gawellek, Bastian & Lyu, Jingjing, 2015. "Did Chinese Outward Activity Attenuate or Aggravate the Great Recession in Developing Countries?," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112994, Verein für Socialpolitik / German Economic Association.
    19. Amighini, Alessia A. & Rabellotti, Roberta & Sanfilippo, Marco, 2013. "Do Chinese state-owned and private enterprises differ in their internationalization strategies?," China Economic Review, Elsevier, vol. 27(C), pages 312-325.
    20. Cui, Lin & Li, Yi & Li, Zijie, 2013. "Experiential drivers of foreign direct investment by late-comer Asian firms: The Chinese evidence," Journal of Business Research, Elsevier, vol. 66(12), pages 2451-2459.

    More about this item

    Keywords

    China; foreign direct investment; internationalization; trade-FDI nexus;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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