IDEAS home Printed from https://ideas.repec.org/a/eme/jcefts/jcefts-06-2020-0024.html
   My bibliography  Save this article

China’s FDI inflow into Ethiopia; Does it have relation with bilateral trade?

Author

Listed:
  • Hana Woldekidan Azmete
  • Kahsay Gerezihar Tsaedu

Abstract

Purpose - The purpose of this study is to empirically analyze if a bilateral trade between two countries leads to a foreign direct investment (FDI) using a time series data spanning over the period 2000–2017. Design/methodology/approach - The Engle-Granger method of co-integration analysis is applied to the data to estimate if China’s export to Ethiopia led to an inflow of FDI from China to Ethiopia over the long run. Findings - The results indicated that bilateral trade (import from China) is a major determinant of Chinese FDI inflow to Ethiopia over the study period. Originality/value - A number of studies have been conducted on the determinants of FDI in Ethiopia using time series data at different points of time. However, none of them tried to analyze what attracts FDI from an individual country. Accordingly, this study has concentrated on FDI from China and its relation with bilateral trade between China and Ethiopia as China is the number one FDI source and trade partner of Ethiopia.

Suggested Citation

  • Hana Woldekidan Azmete & Kahsay Gerezihar Tsaedu, 2021. "China’s FDI inflow into Ethiopia; Does it have relation with bilateral trade?," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing Limited, vol. 14(3), pages 293-305, May.
    • Handle: RePEc:eme:jcefts:jcefts-06-2020-0024
    DOI: 10.1108/JCEFTS-06-2020-0024
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JCEFTS-06-2020-0024/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/JCEFTS-06-2020-0024/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/JCEFTS-06-2020-0024?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    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:eme:jcefts:jcefts-06-2020-0024. 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: Emerald Support (email available below). General contact details of provider: .

    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.