The relationship between the Chinese "going out" strategy and international trade

Ana Lucia Abeliansky and Inmaculada Martínez-Zarzoso

No 2018-20, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: This study is the first to estimate a system of simultaneous gravity equations for Chinese exports, imports and foreign direct investment (FDI) using a sample of 167 countries over the period 2003-2012. The main results indicate that trade and outward FDI are complementary. In particular, the authors show that outward Chinese FDI is related to higher exports and imports and that China trades more with countries hosting Chinese FDI. Results are also robust to the use of instrumental variables. Therefore, the popular claim that Chinese investment could be detrimental for developing countries is not supported by the data.

Keywords: international trade; foreign direct investment; China (search for similar items in EconPapers)
JEL-codes: F14 F21 F59 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-cna and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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https://www.econstor.eu/bitstream/10419/174899/1/1014428424.pdf (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:201820

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