Factors Influencing China’s Outward Foreign Direct Investment

Hsiu-Ling Wu, Chien-Hsun Chen and Yi-Rou Chen
Additional contact information
Hsiu-Ling Wu: Hsiu-Ling Wu, Department of Economics, Soochow University, Taipei, Taiwan; e-mail: hlwu@scu.edu.tw
Yi-Rou Chen: Yi-Rou Chen, Graduate Institute of International Economics, National Chung-Cheng University, Chiayi County, Taiwan.

Margin: The Journal of Applied Economic Research, 2021, vol. 15, issue 3, 299-319

Abstract: The main purpose of this study is to explore factors determining China’s outward FDI (OFDI), with particular emphasis on the unique characteristics of China’s economy during the period of institutional transformation. The empirical results obtained in the present study show that Chinese enterprises tend to invest in countries that have a mature economy. Exports have a significantly positive effect on China’s OFDI, with the relationship between OFDI and exports in China being a complementary one. The relationship between imports and OFDI for China is one of substitution, as Chinese enterprises have often relied upon the importation of key components as a means of acquiring the technology they need. Exchange rates, monopolistic advantage, foreign exchange reserves and the level of technology intensity, all have a significant impact on China’s OFDI, while the GDP growth rate and geographical distance have not had a significant impact. JEL Classification: F200, O160, P450

Keywords: China’s outward FDI; Chinese enterprises; Multinational corporations (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/09738010211010368 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:mareco:v:15:y:2021:i:3:p:299-319

DOI: 10.1177/09738010211010368

Access Statistics for this article

More articles in Margin: The Journal of Applied Economic Research from National Council of Applied Economic Research
Bibliographic data for series maintained by SAGE Publications ().