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China’s Outward Foreign Direct Investment in the Greater Mekong Subregion

Author

Listed:
  • Panthamit, Nisit

    (Chiang Mai University, Thailand)

  • Chaiboonsri, Chukiat

    (Chiang Mai University, Thailand)

Abstract

This article identifies the main determinants of China’s outward foreign direct investment (OFDI) activities with Greater Mekong Subregion (GMS) countries, namely, Cambodia, Lao, Myanmar, Vietnam, and Thailand during the period between 2007 and 2016. We established the Bayesian panel data approach combination. The results of this study show that a higher economic growth rate, gross domestic product, and political stability tend to increase the likelihood of receiving Chinese outward foreign direct investment. On the other hand, higher foreign direct investment performance, inflation rates, rule of law, and business freedom tends to decrease the probability of being a recipient of Chinese outward foreign direct investment. Compared with previous studies that only assessed economic variables, the innovation of this study lies in its inclusion of socio-political variables.

Suggested Citation

  • Panthamit, Nisit & Chaiboonsri, Chukiat, 2020. "China’s Outward Foreign Direct Investment in the Greater Mekong Subregion," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 35(1), pages 129-151.
    • Handle: RePEc:ris:integr:0793
    DOI: 10.11130/jei.2020.35.1.129
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    References listed on IDEAS

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    More about this item

    Keywords

    Outward Foreign Direct Investment (OFDI); Belt and Road Initiative (BRI); China-Greater Mekong Subregion (GMS); Bayesian Regression Approach.;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration

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