What drives China’s outward direct investment?

Chih-Hai Yang (), Mei-Chun Cheng () and Chun-Hung Lin ()
Additional contact information
Chih-Hai Yang: Department of Economics, National Central University, Jhongli City, Taiwan
Mei-Chun Cheng: Taiwan Institute of Economic Research
Chun-Hung Lin: Department of Industrial Economics, Tamkang University

Acta Oeconomica, 2015, vol. 65, issue 3, 431-453

Abstract: This study examines the determinants of China’s outward direct investment (ODI) between 2003 and 2009. We first analyse the structure and dynamics of ODI. We propose three testable hypotheses including technology sourcing, resource seeking, and political linkage. Various estimates show that technology sourcing is supported moderately, whereas resource seeking serves one of primary driving forces. Crucially, the motive of political linkage is significantly related to ODI and it is particularly relevant to developing destinations. This finding indicates that China tends to invest in developing countries with high political risk, which is in contrast with the prediction of the FDI theory. Furthermore, a developing country with high political risk seems to be the favoured destination for China’s ODI to acquire technologies and resources.

Keywords: FDI; energy; political risk; China (search for similar items in EconPapers)
JEL-codes: F21 F23 F50 O32 P45 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.akademiai.com/doi/pdf/10.1556/032.65.2015.3.5 (application/pdf)
subscription

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:aka:aoecon:v:65:y:2015:i:3:p:431-453

Ordering information: This journal article can be ordered from
Akadémiai Kiadó Zrt., P. O. Box 245, H-1519 Budapest, Hungary
https://akjournals.com/

Access Statistics for this article

Acta Oeconomica is currently edited by Mihályi, Péter

More articles in Acta Oeconomica from Akadémiai Kiadó, Hungary
Bibliographic data for series maintained by Kriston, Orsolya ().