THE DETERMINANTS OF OUTWARD FOREIGN DIRECT INVESTMENT STRATEGIES OF CHINESE ENERGY FIRMS

Shiteng Xu (), Jeff Gow, Youzhi Chen (), Yahua Zhang and Zhibin Huang ()
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Shiteng Xu: School of Economics, Faculty of Economics and Management, East China Normal University, 500 Dongchuan Road, Shanghai 200241, China
Youzhi Chen: #xA7;Administration Institute of Minhang District (Shanghai), 258 Shuying Road, Shanghai 201100, China
Yahua Zhang: #x2020;School of Commerce, University of Southern Queensland, Toowoomba, Queensland, Australia
Zhibin Huang: #x2020;School of Commerce, University of Southern Queensland, Toowoomba, Queensland, Australia

The Singapore Economic Review (SER), 2019, vol. 64, issue 04, 1019-1036

Abstract: This paper investigates the location strategies of Chinese energy firms over the period 2003–2013. The results confirm that market-seeking and resource-seeking are two significant motivations behind Chinese energy firms’ outward foreign direct investment (OFDI). As expected, a higher level of the host country’s energy resource reserves attracts more energy resource related projects and the host country’s renewable energy output influences Chinese firms’ renewable energy investment. However, for OFDI in energy resources, the political stability of the host country is not a significant factor while when investing in renewable energy, it is a significant consideration. Interestingly, for OFDI in energy resources, trade integration measured by the share of exports sold in the host country in China’s total exports, is not statistically significant while for OFDI in renewable energy, trade integration affects the investment decision.

Keywords: Energy projects; investment motivations; location strategies; outward foreign direct investment (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (5)

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DOI: 10.1142/S0217590817450072

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