IDEAS home Printed from https://ideas.repec.org/a/aka/aoecon/v65y2015i3p431-453.html
   My bibliography  Save this article

What drives China’s outward direct investment?

Author

Listed:
  • Chih-Hai Yang

    (Department of Economics, National Central University, Jhongli City, Taiwan)

  • Mei-Chun Cheng

    (Taiwan Institute of Economic Research)

  • Chun-Hung Lin

    (Department of Industrial Economics, Tamkang University)

Abstract

This study examines the determinants of China’s outward direct investment (ODI) between 2003 and 2009. We first analyse the structure and dynamics of ODI. We propose three testable hypotheses including technology sourcing, resource seeking, and political linkage. Various estimates show that technology sourcing is supported moderately, whereas resource seeking serves one of primary driving forces. Crucially, the motive of political linkage is significantly related to ODI and it is particularly relevant to developing destinations. This finding indicates that China tends to invest in developing countries with high political risk, which is in contrast with the prediction of the FDI theory. Furthermore, a developing country with high political risk seems to be the favoured destination for China’s ODI to acquire technologies and resources.

Suggested Citation

  • Chih-Hai Yang & Mei-Chun Cheng & Chun-Hung Lin, 2015. "What drives China’s outward direct investment?," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 65(3), pages 431-453, September.
    • Handle: RePEc:aka:aoecon:v:65:y:2015:i:3:p:431-453
    as

    Download full text from publisher

    File URL: http://www.akademiai.com/doi/pdf/10.1556/032.65.2015.3.5
    Download Restriction: subscription
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ren, Siyu & Hao, Yu & Wu, Haitao, 2022. "The role of outward foreign direct investment (OFDI) on green total factor energy efficiency: Does institutional quality matters? Evidence from China," Resources Policy, Elsevier, vol. 76(C).

    More about this item

    Keywords

    FDI; energy; political risk; China;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aka:aoecon:v:65:y:2015:i:3:p:431-453. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kriston, Orsolya (email available below). General contact details of provider: https://akademiai.hu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.