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Can China's Outward FDI be explained by general FDI theory?

Chan, Yim Ting Amy LU and Chan, Shiu Hong (2011) NEKM04 20111
Department of Economics
Abstract
China's surging OFDI has been a prominent phenomenon since the start of 20th century. As China's economic growth is widely received as following a unique path, a question arises immediately---does Chinese outward investment also follows a distinctive pattern which can only be explained by special theories? This paper analyzes the determinants of Chinese OFDI by adopting Random Effects FGLS estimation technique using MOFCOM's data on China's OFDI from 2003 to 2009. Our result shows that Chinese OFDI can well be accommodated within established FDI theoretical framework, with market and natural resources-seeking motivations being the major determinants. Our extended specification suggests that China's OFDI is mainly driven by economic... (More)
China's surging OFDI has been a prominent phenomenon since the start of 20th century. As China's economic growth is widely received as following a unique path, a question arises immediately---does Chinese outward investment also follows a distinctive pattern which can only be explained by special theories? This paper analyzes the determinants of Chinese OFDI by adopting Random Effects FGLS estimation technique using MOFCOM's data on China's OFDI from 2003 to 2009. Our result shows that Chinese OFDI can well be accommodated within established FDI theoretical framework, with market and natural resources-seeking motivations being the major determinants. Our extended specification suggests that China's OFDI is mainly driven by economic interests instead of political goals. (Less)
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author
Chan, Yim Ting Amy LU and Chan, Shiu Hong
supervisor
organization
course
NEKM04 20111
year
type
H1 - Master's Degree (One Year)
subject
keywords
China OFDI, Outward foreign direct investment, determinants
language
English
id
1963296
date added to LUP
2011-06-17 11:28:29
date last changed
2011-06-17 11:28:29
@misc{1963296,
  abstract     = {China's surging OFDI has been a prominent phenomenon since the start of 20th century. As China's economic growth is widely received as following a unique path, a question arises immediately---does Chinese outward investment also follows a distinctive pattern which can only be explained by special theories? This paper analyzes the determinants of Chinese OFDI by adopting Random Effects FGLS estimation technique using MOFCOM's data on China's OFDI from 2003 to 2009. Our result shows that Chinese OFDI can well be accommodated within established FDI theoretical  framework, with market and natural resources-seeking motivations being the major determinants. Our extended specification suggests that China's OFDI is mainly driven by economic interests instead of political goals.},
  author       = {Chan, Yim Ting Amy and Chan, Shiu Hong},
  keyword      = {China OFDI,Outward foreign direct investment,determinants},
  language     = {eng},
  note         = {Student Paper},
  title        = {Can China's Outward FDI be explained by general FDI theory?},
  year         = {2011},
}