Export Promotion of OFDI from Emerging Markets – Transaction-level Evidence from China

Chen, Wenjie; Tang, Heiwai

doi:10.5465/ambpp.2014.17825abstract

Cited by 3 publications

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“…Regarding control variables in −1 , we follow existing studies, such as Cheung et al (2012), and include variables that capture recipient countries' economic and institutional conditions. First, as suggested by Chen and Tang (2013) and Cheung et al (2012), OFDI from China is largely driven by market-and resource-seeking motives. Hence, we include the following variables to proxy for market-and resource-seeking motives.…”

Section: Empirical Strategymentioning

confidence: 99%

Belt and road initiative and Chinese firms' outward foreign direct investment

Qian

Liu

2019

Emerging Markets Review

136

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This paper studies the impact of China's "Belt and Road Initiative" (BRI) on Chinese firms' outward foreign direct investment (OFDI). Overall, the BRI positively impacts on Chinese OFDI activities. However, both the direction and the magnitude of this impact depend on the host countries' willingness to participate in the BRI. The BRI promotes more OFDI to developing countries that welcome China's economic engagement and alters the effect of Chinese domestic push factors on its OFDI patterns. In addition, Chinese firms in construction and infrastructure, manufacturing, and trade-related sectors are more responsive to the BRI than firms in other sectors.

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Section: Empirical Strategymentioning

confidence: 99%

Belt and road initiative and Chinese firms' outward foreign direct investment

Qian

Liu

2019

Emerging Markets Review

136

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“…Between 1990 and 1994, the company shipped over 10 million tons of mineral back to China, saving an estimated $6 million in fees and charges'. Additionally,Hong & Sun (2006) provide Chinese investment in Australia and Canada as the supplementary evidence for resource-seeking strategies in China's OFDI.13 It is widely accepted that governmental support is an important factor driving China's OFDI(Chen & Tang, 2014). Lu…”

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confidence: 99%

Financial development and natural resources: The dynamics of China’s outward FDI

Feng

et al. 2021

World Economy

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China experienced fast and large growth in terms of outward foreign direct investment (OFDI) in the last two decades. According to UNTCAD, the proportion of China's OFDI position to worldwide FDI position has increased by 13.64 times, from 0.36% in 2003 to 4.91% in 2016 (Figure 1a). The average annual growth rate of China's OFDI position was 31.8% during this period, which is around 2.3 times of its GDP growth rate (Figure 1b). The World Investment Report (2018) documents that China was the third largest overseas investor in the world, following the U.S. and Japan, in 2017.Given the importance of China in global OFDI, which factor determines the destination choice of China's OFDI is an important question in the literature. One strand of literature emphasises the role of the natural resource endowment of the host country (e.g., Buckley et al., 2007;Kolstad & Wiig, 2012;Yang et al., 2018). This argument seems plausible as shown in the industrial decomposition of China's OFDI in Table 1. Mining industry is the industry receiving the largest fraction of China's OFDI. 1 Such a view, however, faces two challenges in recent years. One comes from the fact that the Chinese OFDI destinations have been gradually switching from developing economies towards 1 For instance, in 2003, the share of mining sector was 18% (30.34% when excluding Hong Kong in 2008). When we restrict our focus to Asia, which is the largest recipient of China's OFDI, mining again is the sector with a substantial fraction of China's OFDI (see Table A1). 2 Hanemann and Rosen (2012) document that the focus of China's OFDI has shifted from mainly being natural resourceseeking investments in Asia, Latin America and Africa towards being assets in the European Union, in particular, those heavily hit by the debt crisis, such as Greece, Portugal and Spain. Dreger et al. (2017) also document the rising trend of China's OFDI in the European Union. 3 These regions are typically viewed as offshore financial centres and tax heavens. It has widely been accepted that capital | 741 FENG Et al.

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Impact of outward FDI on exports: a theoretical and empirical review

Kapoor¹,

Arora²

2022

Transnational Corporations Review

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Export Promotion of OFDI from Emerging Markets – Transaction-level Evidence from China

Cited by 3 publications

References 0 publications

Belt and road initiative and Chinese firms' outward foreign direct investment

Belt and road initiative and Chinese firms' outward foreign direct investment

Financial development and natural resources: The dynamics of China’s outward FDI

Impact of outward FDI on exports: a theoretical and empirical review

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