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Chinese outward foreign direct investment: Is ASEAN a new destination?

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  • Nguyen, Thi Tuong Anh
  • Doan, Quang Hung

Abstract

The paper re-investigates the determinants of China’s outward foreign direct investment (ODI) employing panel data analysis collecting between 2003 and 2014. The results highlight that the market-seeking variables as GDP, GDP Per Capita, and openness to trade have a positive impact on China’s ODI. In addition, Chinese investors are likely to be not associated with economic growth of host countries. Importantly, the previous studies confirmed that only the rich natural resources and the weak institutions countries attracted China’s ODI. However, we found out that, in recent years, not only weak institutions but also good institutions with rich natural resources countries attracted China’s ODI. Moreover, China – ASEAN FTA and cultural proximity between the host country and China both have a significant positive effect of China’s ODI.

Suggested Citation

  • Nguyen, Thi Tuong Anh & Doan, Quang Hung, 2016. "Chinese outward foreign direct investment: Is ASEAN a new destination?," MPRA Paper 71890, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:71890
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    Cited by:

    1. Ehouma Jacques Allou & Bosede Ngozi Adeleye & Jianhua Cheng & Rehman Abdul, 2020. "Is there a nexus between China outward foreign direct investment and welfare in Côte dʼIvoire? Empirical evidence from the Toda–Yamamoto procedure," African Development Review, African Development Bank, vol. 32(3), pages 499-510, September.
    2. K. S. Sujit & B. Rajesh Kumar & Sarbjit Singh Oberoi, 2020. "Impact of Macroeconomic, Governance and Risk Factors on FDI Intensity—An Empirical Analysis," JRFM, MDPI, vol. 13(12), pages 1-14, December.

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    More about this item

    Keywords

    Chinese Outward FDI; ASEAN;

    JEL classification:

    • F1 - International Economics - - Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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