Comparison of Investment Behaviour of Source Countries in China

Chunlai Chen

No 1997-14, Chinese Economies Research Centre (CERC) Working Papers from University of Adelaide, Chinese Economies Research Centre

Abstract: Foreign direct investment in China by country of origin, on the one hand, presents significant diversification in terms of the total number of investing countries; on the other hand, it also shows great concentration in terms of the overwhelming dominance of developing source countries, particularly the Asian Newly Industrialising Economies. This article aims to explore the characteristics and investment behaviour of the major source countries and, in particular, to compare the differences in investment behaviour of the two source country groups of developing and developed source countries. It argues that because of the differences in economic and technological development levels, developing and developed country investors should have differences in their investment behaviour. This study revealed several main differences in investment behaviour in terms of investment pattern, mode of entry, export propensity and the use of production technology between developing and developed source countries in China.

Date: 1997
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