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Changing Patterns of Foreign Direct Investments - A Comparative Study of Chinese Investment Behavior in Sub-Saharan Africa

Brunberg, Emma LU and Miranda Thyrén, Felix LU (2014) NEKH01 20141
Department of Economics
Abstract
In the light of changing global foreign direct investment (FDI) patterns, economic research has started to pay an increasing amount of attention to China as one of the new main investor countries, and emphasize the implications of this in the world economy. This thesis examines Chinese FDI flows and investor behavior in Sub-Saharan Africa (SSA), and relates this to the academic debate surrounding its perceived controversy. Country-level panel data is used to estimate Chinese FDI flows through two different types of regressions, in order to distinguish what factors are significant in Chinese FDI flows to SSA. This is done in order to empirically analyze whether the characteristics of Chinese investor behavior in SSA differ from how other... (More)
In the light of changing global foreign direct investment (FDI) patterns, economic research has started to pay an increasing amount of attention to China as one of the new main investor countries, and emphasize the implications of this in the world economy. This thesis examines Chinese FDI flows and investor behavior in Sub-Saharan Africa (SSA), and relates this to the academic debate surrounding its perceived controversy. Country-level panel data is used to estimate Chinese FDI flows through two different types of regressions, in order to distinguish what factors are significant in Chinese FDI flows to SSA. This is done in order to empirically analyze whether the characteristics of Chinese investor behavior in SSA differ from how other influential investor countries act in this region, and moreover, investigate how the obtained results correspond with general theories of FDI. The results of the empirical analysis are somewhat ambiguous. They indicate that China does follow the predictions expected from general FDI theory, but may have a more pronounced inclination towards the resource seeking type of FDI, where investments are linked mainly to host country natural resources. Moreover, it is found that both China and other major investors seem to be driven by market seeking FDI motives, attracted by the emerging markets in SSA. (Less)
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author
Brunberg, Emma LU and Miranda Thyrén, Felix LU
supervisor
organization
course
NEKH01 20141
year
type
M2 - Bachelor Degree
subject
keywords
FDI, China, Sub-Saharan Africa, OLI framework, gravity model
language
English
id
4612352
date added to LUP
2014-09-22 14:04:55
date last changed
2014-09-22 14:04:55
@misc{4612352,
  abstract     = {In the light of changing global foreign direct investment (FDI) patterns, economic research has started to pay an increasing amount of attention to China as one of the new main investor countries, and emphasize the implications of this in the world economy. This thesis examines Chinese FDI flows and investor behavior in Sub-Saharan Africa (SSA), and relates this to the academic debate surrounding its perceived controversy. Country-level panel data is used to estimate Chinese FDI flows through two different types of regressions, in order to distinguish what factors are significant in Chinese FDI flows to SSA. This is done in order to empirically analyze whether the characteristics of Chinese investor behavior in SSA differ from how other influential investor countries act in this region, and moreover, investigate how the obtained results correspond with general theories of FDI. The results of the empirical analysis are somewhat ambiguous. They indicate that China does follow the predictions expected from general FDI theory, but may have a more pronounced inclination towards the resource seeking type of FDI, where investments are linked mainly to host country natural resources. Moreover, it is found that both China and other major investors seem to be driven by market seeking FDI motives, attracted by the emerging markets in SSA.},
  author       = {Brunberg, Emma and Miranda Thyrén, Felix},
  keyword      = {FDI,China,Sub-Saharan Africa,OLI framework,gravity model},
  language     = {eng},
  note         = {Student Paper},
  title        = {Changing Patterns of Foreign Direct Investments - A Comparative Study of Chinese Investment Behavior in Sub-Saharan Africa},
  year         = {2014},
}