China’s Outward Foreign Direct Investments and Impact on the World Economy

Yao, Shujie; Wang, Pan

doi:10.1057/9781137321107

Cited by 6 publications

(3 citation statements)

References 134 publications

(272 reference statements)

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“…It is observed that China’s OFDI developed from a very limited scale and has surged over the last decade. China’s entry into the WTO in 2001 and the launch of the “Going Global” strategy in 2002 greatly shifted the landscape of China’s OFDI (Yao and Wang, 2014).…”

Section: Introductionmentioning

confidence: 99%

Determinants of China’s outward foreign direct investment in the Belt & Road economies

Shahriar

Kea

2019

IJOEM

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Purpose The purpose of this paper is to investigate the major determinants of China’s outward foreign direct investment (OFDI) in the economies along the “Belt & Road” Initiative (BRI afterward). China works on to advance the agenda of the BRI both at home and abroad. The BRI is set up to promote connectivity in five key areas: policy coordination, infrastructure connectivity, trade facilitation, financial cooperation and people-to-people contacts. Design/methodology/approach The existing literature is inconclusive with regards to the motives, patterns and determinants of the Chinese OFDI. The authors are, therefore, motivated to undertake this study to shed some new light on the influencing factors of the Chinese OFDI. The authors have made a unique data set that consists of China and its 64 partnering countries of the BRI over a time period of 12 years spanning from 2004 to 2015. This time period is chosen on the chief consideration of data availability. The authors have a balanced panel, and applied the gravity model in line with the theoretical arguments and econometric developments. Findings The paper assumes that China’s OFDI along the BRI was a function of gross domestic product (GDP), income per capita, distance and WTO. The findings showed that GDP, per capita income and distance were the key determinants of the OFDI. China’s entry into the WTO did not strongly affect the OFDI. China maintained a tradition of historical relationships along the BRI economies. After all, China is relocating its investment resources in line with the consideration of its partnering countries’ economic size, cross-border distance and per capita income. Originality/value This study is the first of its kinds to analyze the determinants of OFDI by means of gravity model. The authors have covered all the countries along the BRI. Hence, this paper aims to make a substantial contribution to the literature, both from a scientific and a policy perspective.

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Section: Introductionmentioning

confidence: 99%

Determinants of China’s outward foreign direct investment in the Belt & Road economies

Shahriar

Kea

2019

IJOEM

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“…If the first experiences are positive, further projects implemented abroad are designed to improve the efficiency and, next, to acquire strategic resources, i.e., in most cases new technology that could help boost the competitiveness. Motivations that drive the investors are guided by certain rules and follow a specific sequence, which can be detected also in the pattern followed by investors from the emerging markets as suggested by, e.g., China's outward direct investments studies (Yao & Wang, 2014).…”

Section: Relevance Of International Trade To the Economy Of The Lodz mentioning

confidence: 99%

Motives of Poland’s Outward Direct Investments from the Lodz Region: Results of a Direct Study

Dorożyński¹,

Kuna‐Marszałek²,

Świerkocki³

2017

EBER

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A B S T R A C T Objective:The objective of the paper is to identify motivation behind FDI followed by enterprises from the Lodz Region and to find out if these motives are similar in companies different in size, share of foreign capital and internationalisation path. Research Design & Methods: Empirical research was based on questionnaire-based interviews and in-depth interviews which covered 80% of outward direct investors from the Lodz Region. It provided grounds to assess the importance of their motives. Findings: Enterprises from the Lodz region which decided to get involved as FDIs most often pointed to market seeking motives. The significance of other motives was secondary. With several exceptions (mainly with respect to cost) the size of an enterprise, foreign capital holdings and internationalisation path did not differentiate motives that encouraged respondents to engage their resources abroad. Implications & Recommendations:The study is explorative, and its results should be understood as the starting point for further studies. Results suggest that, firstly, at the present stage of internationalisation the state should offer possible support to all operators on equal conditions. Secondly, if already some enterprises invest abroad seeking better and cheaper employees, it may be profitable for the state to take upgrade the quality of workforce and reduce its relatively high costs in Poland. Contribution & Value Added:The main input delivered by the study to the current body of knowledge about OFDI motives consists in trying to identify relationships between motives followed by the Polish direct investors and their selected characteristics (size of a firm, share of foreign capital holdings, and internationalisation path). Article type: research paper

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“…Yao and Wang (2014) provide a detailed analysis of the growing FDI outflows from China and analyze its impact on the global economy [27]. Yao, Wang, Zhang and Ou (2016) continued this analysis in 2016, when they researched dynamic relationship between China's inward and outward FDI and tried to identify the key determinants of China's outward FDI (OFDI) in 172 host countries [28].…”

Section: Brief Literature Reviewmentioning

confidence: 99%

Growth of Chinese investments in Europe after the global economic crisis of 2008-2009

Dudáš¹,

Dudasova²

2016

EA-XXI

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Abstract. For a long time China was viewed as a typical host country in international capital flows. Long-term rapid economic growth and trade surpluses produced quick accumulation of capital in China which has led to increasing capital flows abroad from public and private companies. When amid the global economic crisis of 2008-2009 domestic investment declined in many economically developed countries, Chinese investments stepped into their domestic investment markets to fill the void. The aim of this paper is to document the growth of Chinese investment in Europe, and to identify the main factors behind this growth. Анотация. Долгое время Китай воспринимался на мировом рынке капитала исключительно как типичная страна-реципиент инвестиций. Однако стремительный экономический рост и значительный профицит торгового баланса обеспечили накопление в КНР значительных финансовых средств и сделали возможным рост государственных и частных инвестиций за рубежом. Когда мировой финансовый кризис 2008-2009 гг. привел к сокращению объема внутренних инвестиций во многих экономически развитых странах, китайские инвестиции стали массово приходить в эти страны. Целью статьи является определение масштабов китайских инвестиций после мирового экономического кризиса и факторов, сделавших возможным значительный рост инвестиционной активности КНР. В статье также проанализировано географическое распределение китайских инвестиций в Европе, особое внимание уделено центральноевропейскому региону.

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China’s Outward Foreign Direct Investments and Impact on the World Economy

Cited by 6 publications

References 134 publications

Determinants of China’s outward foreign direct investment in the Belt & Road economies

Determinants of China’s outward foreign direct investment in the Belt & Road economies

Motives of Poland’s Outward Direct Investments from the Lodz Region: Results of a Direct Study

Growth of Chinese investments in Europe after the global economic crisis of 2008-2009

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