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China's Outward Direct Investment in Africa

  • 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)

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.

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Paper provided by Hong Kong Institute for Monetary Research in its series Working Papers with number 132011.

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Length: 38 pages
Date of creation: Apr 2011
Date of revision:
Handle: RePEc:hkm:wpaper:132011
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