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Study on the spatial distribution of China's Outward Foreign Direct Investment in EU and its influencing factors

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  • Li Shuyan

    (Zhejiang University of Technology, China)

  • Michal Fabuš

    (Bratislava University of Economics and Management, Slovakia)

Abstract

Since 2000s China's outward foreign direct investment (OFDI) in developed economies has grown rapidly, boosting the technological advancement of Chinese companies and the advancement of global value chains. In the context of the United States continuing to impose investment restrictions on China, the EU has an important position in the OFDI pattern in China. Although China's OFDI in the EU has maintained rapid growth overall, the location distribution is not balanced. This paper uses spatial measurement method to test China's spatial pattern change of OFDI in EU member states and finds that there are spatial agglomeration effects and spatial spillover effects. The spatial panel analysis method is used to test the factors affecting the spatial distribution China's OFDI in EU. It is found that the market size, technology level and investment freedom of the host country have positive effects on the location selection of China's OFDI in EU.

Suggested Citation

  • Li Shuyan & Michal Fabuš, 2019. "Study on the spatial distribution of China's Outward Foreign Direct Investment in EU and its influencing factors," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(3), pages 1280-1296, March.
    • Handle: RePEc:ssi:jouesi:v:6:y:2019:i:3:p:1280-1296
    DOI: 10.9770/jesi.2019.6.3(16)
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    References listed on IDEAS

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    1. Bevan, Alan & Estrin, Saul & Meyer, Klaus, 2004. "Foreign investment location and institutional development in transition economies," International Business Review, Elsevier, vol. 13(1), pages 43-64, February.
    2. Peter J. Buckley & Mark Casson, 2010. "The Optimal Timing of a Foreign Direct Investment," Palgrave Macmillan Books, in: The Multinational Enterprise Revisited, chapter 2, pages 25-40, Palgrave Macmillan.
    3. Blanc-Brude, Frédéric & Cookson, Graham & Piesse, Jenifer & Strange, Roger, 2014. "The FDI location decision: Distance and the effects of spatial dependence," International Business Review, Elsevier, vol. 23(4), pages 797-810.
    4. Josef C. Brada & Zdenek Drabek & M. Fabricio Perez, 2012. "The Effect of Home-country and Host-country Corruption on Foreign Direct Investment," Review of Development Economics, Wiley Blackwell, vol. 16(4), pages 640-663, November.
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    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).
    2. Hengbin Yin & Muhammad Mohsin & Luyao Zhang & Chong Qian & Yan Cai, 2022. "Accessing the Impact of FDI Goals on Risk Management Strategy and Management Performance in the Digital Era: A Case Study of SMEs in China," Sustainability, MDPI, vol. 14(22), pages 1-20, November.
    3. Jurgita Bruneckiene & Robertas Jucevicius & Ineta Zykiene & Jonas Rapsikevicius & Mantas Lukauskas, 2019. "Assessment of Investment Attractiveness in European Countries by Artificial Neural Networks: What Competences are Needed to Make a Decision on Collective Well-Being?," Sustainability, MDPI, vol. 11(24), pages 1-23, December.

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    More about this item

    Keywords

    Outward Foreign Direct Investment (OFDI); spatial distribution; influencing factors;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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