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China's Outward Direct Investment in Africa

Author

Listed:
  • Yin-Wong Cheung

    (University of California, Santa Cruz and Hong Kong Institute for Monetary Research)

  • Jakob de Haan

    (De Nederlandsche Bank)

  • XingWang Qian

    (SUNY, Buffalo State College)

  • Shu Yu

    (University of Groningen)

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.

Suggested Citation

  • Yin-Wong Cheung & Jakob de Haan & XingWang Qian & Shu Yu, 2011. "China's Outward Direct Investment in Africa," Working Papers 132011, Hong Kong Institute for Monetary Research.
  • Handle: RePEc:hkm:wpaper:132011
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    References listed on IDEAS

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    More about this item

    Keywords

    Market Seeking; Resources Seeking; Risk; Trade Relationship; Contracted Projects; Going Global Policy; Energy Procurement;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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