IDEAS home Printed from https://ideas.repec.org/a/taf/reroxx/v32y2019i1p3869-3894.html
   My bibliography  Save this article

Natural resource or market seeking motive of China’s FDI in asia? New evidence at income and sub-regional level

Author

Listed:
  • Muhammad Abdul Kamal
  • Assad Ullah
  • Jiajia Zheng
  • Bowen Zheng
  • Huizhu Xia

Abstract

Asia is a heterogeneous region including countries with distinct features in quite a few facets. This study is designed to unravel the motivations of Chinese FDI in 30 Asian countries (For list of countries see Appendix 1.) during 2003–2016. For estimation, we utilised the Random effect (RE), Fixed effect (FE) and System-GMM (SGMM) methodologies. We transpired that both market and natural resource (mineral richness) seeking motives of Chinese FDI in the whole sample analysis. With respect to income group, we confirmed the market seeking FDI in both high and middle-income countries whereas, mineral richness is priority for Chinese FDI in middle-income group. Thus, Chinese firms targeted middle income developing economies to acquire non-fuel natural resources. Analogously, on the regional basis, the results show that in all regression models, GDP is positive and significant predictor, characterising market seeking FDI by Chinese firms in West, East and South East Asia. In resource seeking motive, among the two types of natural resources, mineral richness affect Chinese FDI positively in East & South East Asia. In a nutshell, seeking market is the common motive for Chinese FDI in the entire sample, whereas the resource seeking motive varies across the income groups and regions.

Suggested Citation

  • Muhammad Abdul Kamal & Assad Ullah & Jiajia Zheng & Bowen Zheng & Huizhu Xia, 2019. "Natural resource or market seeking motive of China’s FDI in asia? New evidence at income and sub-regional level," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 3869-3894, January.
    • Handle: RePEc:taf:reroxx:v:32:y:2019:i:1:p:3869-3894
    DOI: 10.1080/1331677X.2019.1674679
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1331677X.2019.1674679
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1331677X.2019.1674679?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.

    Citations

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


    Cited by:

    1. Xiao, Anran & Xu, Zeshui & Qin, Yong & Lv, Shengnan & Skare, Marinko, 2023. "The impact of natural resources on technology innovation from cross-country panel data: A comparative analysis and policy-level insights," Resources Policy, Elsevier, vol. 85(PB).

    More about this item

    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:taf:reroxx:v:32:y:2019:i:1:p:3869-3894. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rero .

    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.