Factors Influencing International Infrastructure Investment: An Empirical Study from Chinese Investors

Senchang Hu, Yunhong Wang and Wenzhe Tang ()
Additional contact information
Senchang Hu: State Key Laboratory of Hydroscience and Engineering, Institute of Project Management and Construction Technology, Tsinghua University, Beijing 100084, China
Yunhong Wang: State Key Laboratory of Hydroscience and Engineering, Institute of Project Management and Construction Technology, Tsinghua University, Beijing 100084, China
Wenzhe Tang: State Key Laboratory of Hydroscience and Engineering, Institute of Project Management and Construction Technology, Tsinghua University, Beijing 100084, China

Sustainability, 2023, vol. 15, issue 14, 1-15

Abstract: International economic cooperation accelerates the flow of capital, technology, labor, and other factors between different countries, which promotes global sustainable development. Building infrastructure construction is an important way to strengthen social development, and absorbing foreign capital is an effective way for developing countries to improve their infrastructure and to promote economic development. This study puts forward the factors that have influenced China’s investment in international engineering projects, and it constructs a panel data regression model for empirical testing. The study shows that, first, international infrastructure investment tends to select countries or regions with good condition of highway infrastructure. Second, international infrastructure investment tends to choose countries or regions with low development level of port and power infrastructure. Third, bilateral diplomatic visits play a significant role in promoting international infrastructure investment. Fourth, international infrastructure investment tends to choose countries or regions with good resource endowment. This study reveals the influencing factors and the mechanisms for the choices of location for China’s investment in international engineering projects, providing a theoretical framework for investors to optimize international infrastructure investment and management, as well as providing the policy references for developing countries to attract international infrastructure investment.

Keywords: international infrastructure investment; location choice; influencing factors (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/14/11072/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/14/11072/ (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:gam:jsusta:v:15:y:2023:i:14:p:11072-:d:1194710

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().