Geographical and Strategic Factors in Chinese Foreign Direct Investment in Europe

Richet, Xavier

doi:10.1162/asep_a_00700

Cited by 8 publications

(8 citation statements)

References 4 publications

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“…Similarly, Abbas and Mosallamy (2016) using a panel data model found that resources, market openness, human capital, infrastructure and political stability are significant determinants of F.D.I. Likewise, Richet (2019) reveals that countries with smaller market opportunities receive less direct investment.…”

Section: Literature Reviewmentioning

confidence: 94%

The impacts of institutional quality and business environment on Chinese foreign direct investment flow to African countries

Borojo

Jiang

2019

Economic Research-Ekonomska Istraživanja

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This study examines the impacts of institutional quality and business environment on Chinese foreign direct investment (F.D.I.) flow to Africa. We derive aggregate indicators of institutional quality and business environment using economic and governance institutions, doing business, transport efficiency indicators conducting a principal component analysis. We employ Poisson pseudo-maximum likelihood (P.P.M.L.) procedure to estimate the gravity model of F.D.I. flow as it can solve zero-valued observations and heterogeneity problems. Our findings disclose that institutional quality and business environment indicators are significant motivators of Chinese F.D.I. flow to Africa. Our findings are robust and similar after we account for endogeneity concerns using an I.V. estimator. Based on our results, we conclude that improvement in the business environment and the institutional quality of African countries is key to spurring Chinese F.D.I. flow to Africa.

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Section: Literature Reviewmentioning

confidence: 94%

The impacts of institutional quality and business environment on Chinese foreign direct investment flow to African countries

Borojo

Jiang

2019

Economic Research-Ekonomska Istraživanja

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“…Second, given the demonstrated importance of economic integration for FDI (Bandelj, 2010 ; Bitzenis, 2016 ; Kekic, 2005 ), disruptions in Balkan countries’ EU accession progress will be detrimental to FDI inflows from other European origin countries. Third, although China remains only a minor player in this region at the time of writing, its future role could be monumental (Richet, 2019 ). China’s global Belt and Road Initiative features a major Balkan corridor passing through many of these countries, and its 16 + 1 diplomatic outreach toward CEE imply that its leaders seek a “backdoor” to European markets for Chinese MNEs.…”

Section: Suggestions For Policy and Further Researchmentioning

confidence: 99%

FDI propensity and geo-cultural interaction in former Yugoslavia: pairwise analysis of origin and destination countries

2022

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This research examines FDI location choice across the successor states of Yugoslavia roughly 25 years after dissolution. Based upon 12,245 pairwise observations from 2005 to 2016, the paper employs logit models to estimate empirically the impact of geographic distance, cultural similarity, and geo-cultural interaction on FDI propensity. The contributions are twofold. First, while geographic distance and culture similarity are typically modeled as independent FDI determinants, their interaction is also examined here. Second, the paper contributes to the sparse scholarship on FDI in this complex European region, using binary-choice models to highlight its linkages to the global economy. The findings suggest that—in addition to mainstream economic, regulatory, and political factors—a tradeoff exists between distance and culture in attracting FDI. Host governments seeking FDI that promotes economic growth might increase the likelihood of FDI by targeting geographically-proximate partners that are culturally similar. The role of geographic distance in reducing FDI propensity gives way to other enabling variables beyond the distance of 1800 km.

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“…The major destinations in Europe are Germany, the United Kingdom and France, where major capital investments are made, followed by other European as well as Western Balkan countries. The Western Balkan countries receive less investment than the most developed countries, mainly due to smaller market opportunities, but in no case can they be considered as small amounts because they contribute significantly to the economic development of these countries (Richet, 2019). China has very good bilateral relations with the EU and therefore investing in those countries may provide even better access to Chinese companies in the future (Jia, 2015;Parenti & Chen, 2019).…”

Section: економикаmentioning

confidence: 99%

The global distribution of Chinese investments: Importance for the economy of Serbia

Marjanović¹,

Jovičić²,

Stojanović³

2021

Ekonomika

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Before the onset of the global economic crisis (2007), SEE countries generally focused their activities on attracting investment from developed and affluent European countries. The financial crisis has significantly affected the inflow of foreign investment, so that some Southeast European countries have become very attractive destinations for Chinese companies and their investments. This is precisely the period when Chinese companies received a clear signal from their home country to take advantage of the financial crisis that hit European countries, to diversify their investments and increase their market share. Due to lack of investment, Serbia opened its market and received fresh Chinese capital. The aim of this paper is to present the global distribution of Chinese investments, with particular reference to the importance they have for the Serbian economy. In order to get a clearer picture of the current situation, the secondary data for the period 2013-2019 years are used in the analysis, both regionally and globally. Based on the obtained results, it can be concluded that Serbia is currently the largest recipient of Chinese investments in the region, and in the upcoming period, the trend of Chinese investments growth is expected to be continued, which will further contribute to the development of the Serbian economy.

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Geographical and Strategic Factors in Chinese Foreign Direct Investment in Europe

Cited by 8 publications

References 4 publications

The impacts of institutional quality and business environment on Chinese foreign direct investment flow to African countries

The impacts of institutional quality and business environment on Chinese foreign direct investment flow to African countries

FDI propensity and geo-cultural interaction in former Yugoslavia: pairwise analysis of origin and destination countries

The global distribution of Chinese investments: Importance for the economy of Serbia

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