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The relationship between the Chinese "going out" strategy and international trade

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  • Abeliansky, Ana Lucia
  • Martínez-Zarzoso, Inmaculada

Abstract

This study is the first to estimate a system of simultaneous gravity equations for Chinese exports, imports and foreign direct investment (FDI) using a sample of 167 countries over the period 2003-2012. The main results indicate that trade and outward FDI are complementary. In particular, the authors show that outward Chinese FDI is related to higher exports and imports and that China trades more with countries hosting Chinese FDI. Results are also robust to the use of instrumental variables. Therefore, the popular claim that Chinese investment could be detrimental for developing countries is not supported by the data.

Suggested Citation

  • Abeliansky, Ana Lucia & Martínez-Zarzoso, Inmaculada, 2018. "The relationship between the Chinese "going out" strategy and international trade," Economics Discussion Papers 2018-20, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwedp:201820
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    10. Inma Martínez-Zarzoso & F. D. Nowak-Lehmann & S. Klasen, 2017. "Aid and Its Impact on the Donor’s Export Industry: The Dutch Case," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(4), pages 769-786, August.
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    1. 34. Notable Women researchers on Economics
      by Euro American Association EAAEDS in Euro-American Association: World Development on 2018-10-09 19:52:00

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    Cited by:

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    2. Harms, Philipp & Wacker, Konstantin M., 2019. "The special issue on FDI and multinational corporations: An introduction," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 13, pages 1-7.
    3. Camélia TURCU & Yunzhi ZHANG, 2020. "How Does Development Aid Impact Trade Performance and Margins? Evidence from China," LEO Working Papers / DR LEO 2847, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    4. Queder, Fabian, 2020. "Competitive effects of cable networks on FTTx deployment in Europe," Telecommunications Policy, Elsevier, vol. 44(10).
    5. Gürel, Burak & Kozluca, Mina, 2022. "Chinese investment in Turkey: the Belt and Road Initiative, rising expectations and ground realities," LSE Research Online Documents on Economics 113841, London School of Economics and Political Science, LSE Library.
    6. Werner Pascha, 2020. "The quest for infrastructure development from a “market creation” perspective: China’s “Belt and Road”, Japan’s “Quality Infrastructure” and the EU’s “Connecting Europe and Asia”," International Economics and Economic Policy, Springer, vol. 17(3), pages 687-704, July.

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    More about this item

    Keywords

    international trade; foreign direct investment; China;
    All these keywords.

    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
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other

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