EconPapers    
Economics at your fingertips  
 

A Gravitational Model for Estimate the Determinants of Outward Foreign Direct Investment of China

Marco Mele and Angelo Quarto
Additional contact information
Marco Mele: University of International Studies, Rome, Italy,
Angelo Quarto: Sapienza University, Rome, Italy

International Journal of Economics and Financial Issues, 2017, vol. 7, issue 1, 1-5

Abstract: Gravity models utilize the attractive force concept as an analogy to explain volume of trade or capital flows. This paper aims at proving that direct investment flows between China and a group of South-East Asian countries are determined by standard variables included in gravity models such as: Gross domestic products of home and host economy and distance between them. In our gravity model on foreign direct investment (FDI) we include not only gravity variables but also other variables that may explain what factors affecting Chinese outward FDI (OFDI): Political risk, cultural proximity, the degree of openness to international trade and a proxy for natural resources. This paper, after having defined the variables that are capable of influencing Chinese OFDI, will suggest a method of econometric calculation of the gravitational model based on Prais-Winsten regression; correlated panels corrected standard errors.

Keywords: Foreign Direct Investment; Gravity Model; Chinese Outward Foreign Direct Investment (search for similar items in EconPapers)
JEL-codes: F14 F15 F21 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.econjournals.com/index.php/ijefi/article/download/1663/pdf (application/pdf)
http://www.econjournals.com/index.php/ijefi/article/view/1663/pdf (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:eco:journ1:2017-01-01

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().

 
Page updated 2019-11-30
Handle: RePEc:eco:journ1:2017-01-01