Private Chinese Investment in Ethiopia: Determinants and Location Decisions

Mebratu Seyoum and Jihong Lin

Journal of International Development, 2015, vol. 27, issue 7, 1223-1242

Abstract: Using a unique firm‐level data from the World Bank Survey on Chinese outbound direct investment conducted in Ethiopia in 2012, this study examines the determinants and location decisions of private Chinese investment in Ethiopia. Principal components factor analysis shows that (i) Chinese firms invest in Ethiopia to take advantage of their ownership advantages, (ii) market access motives are influential in investment location decision‐making and (iii) host government incentive packages towards inward foreign direct investment affect their location decisions, albeit less influential than other factors. These results remain robust when we controlled for two separate clusters of Chinese firms. Copyright © 2014 John Wiley & Sons, Ltd.

Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jintdv:v:27:y:2015:i:7:p:1223-1242

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