IDEAS home Printed from https://ideas.repec.org/a/taf/wjabxx/v14y2013i2p75-84.html
   My bibliography  Save this article

Drivers and Motives for Chinese Outward Foreign Direct Investments in Africa

Author

Listed:
  • Rian Drogendijk
  • Katarina Blomkvist

Abstract

The authors set out to empirically test the degree of Chinese investments in Africa by systematically examining the explanatory value of existing theoretical motivations for foreign direct investment (FDI) for the period of 2003--2009. All else equal, the authors find that African countries enjoy a higher likelihood of Chinese outward FDI than the rest of the world. Moreover, they find that Chinese firms invest in African markets for market-seeking, natural resource--seeking, and strategic asset--seeking motives; hence, the motives for Chinese FDI in Africa seem to match those of Western firms' investments in global markets.

Suggested Citation

  • Rian Drogendijk & Katarina Blomkvist, 2013. "Drivers and Motives for Chinese Outward Foreign Direct Investments in Africa," Journal of African Business, Taylor & Francis Journals, vol. 14(2), pages 75-84, August.
    • Handle: RePEc:taf:wjabxx:v:14:y:2013:i:2:p:75-84
    DOI: 10.1080/15228916.2013.804320
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/15228916.2013.804320
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/15228916.2013.804320?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.

    References listed on IDEAS

    as
    1. Hinrich Voss, 2011. "The Determinants of Chinese Outward Direct Investment," Books, Edward Elgar Publishing, number 13814.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Yassin Elshain Yahia & Liu Haiyun & Muhammad Asif Khan & Sayyed Sadaqat Hussain Shah & Mollah Aminul Islam, 2018. "The Impact of Foreign Direct Investment on Domestic Investment: Evidence from Sudan," International Journal of Economics and Financial Issues, Econjournals, vol. 8(6), pages 1-10.
    2. Xinming Xia & Wan-Hsin Liu, 2024. "Exploring the overlooked diversity of Chinese investments in Africa in the pre-BRI era," Economics Bulletin, AccessEcon, vol. 44(3), pages 1132-1146.
    3. Simplice A. Asongu & Paul N. Acha-Anyi, 2020. "A survey on the Washington Consensus and the Beijing Model: reconciling development perspectives," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(2), pages 111-129, June.
    4. Simplice Asongu & Jacinta C. Nwachukwu & Gilbert A. A. Aminkeng, 2018. "Lessons from a Survey of China’s Economic Diplomacy," Working Papers of the African Governance and Development Institute. 18/009, African Governance and Development Institute..
    5. Kafilah Lola Gold, 2022. "The determinant of Chinese foreign direct investments in oil exporting African countries," Contemporary Economic Policy, Western Economic Association International, vol. 40(3), pages 476-490, July.
    6. Fon, Roger & Alon, Ilan, 2022. "Governance, foreign aid, and Chinese foreign direct investment," LSE Research Online Documents on Economics 113678, London School of Economics and Political Science, LSE Library.
    7. Asongu, Simplice A, 2014. "Sino-African relations: a review and reconciliation of dominant schools of thought," MPRA Paper 66597, University Library of Munich, Germany.
    8. Miao Miao & Jiang Yushi & Dinkneh Gebre Borojo, 2020. "The Impacts of China–Africa Economic Relation on Factor Productivity of African Countries," Economies, MDPI, vol. 8(2), pages 1-30, June.
    9. Simplice Anutechia Asongu, 2014. "A Development Consensus reconciling the Beijing Model and Washington Consensus: Views and Agenda," AAYE Policy Research Working Paper Series 14_025, Association of African Young Economists, revised Dec 2014.
    10. Asongu, Simplice, 2014. "Reinventing foreign aid for inclusive and sustainable development: a survey," MPRA Paper 65300, University Library of Munich, Germany.
    11. Simplice Asongu, 2016. "Reinventing Foreign Aid For Inclusive And Sustainable Development: Kuznets, Piketty And The Great Policy Reversal," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 736-755, September.
    12. NGUENA Christian-Lambert, 2014. "External Debt Origin, Capital Flight and Poverty Reduction in the Franc Zone: Does the Economic Consequences of Sino-African Relationship matter?," Working Papers of the African Governance and Development Institute. 14/016, African Governance and Development Institute..
    13. Simplice Asongu & John Ssozi, 2016. "Sino-African Relations: Some Solutions and Strategies to the Policy Syndromes," Journal of African Business, Taylor & Francis Journals, vol. 17(1), pages 33-51, January.
    14. Simplice A. Asongu & Jacinta C. Nwachukwu, 2017. "Fighting Capital Flight in Africa: Evidence from Bundling and Unbundling Governance," Journal of Industry, Competition and Trade, Springer, vol. 17(3), pages 305-323, September.
    15. Amsalu K. Addis & Simplice Asongu & Zhu Zuping & Hailu Kendie Addis & Eshetu Shifaw, 2020. "Chinese and Indian investment in Ethiopia: infrastructure for ‘debt-trap diplomacy’ exchange and the land grabbing approach," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 16(6), pages 998-1025, June.
    16. Amar Anwar & Ichiro Iwasaki, 2022. "Institutions and FDI from BRICS countries: a meta-analytic review," Empirical Economics, Springer, vol. 63(1), pages 417-468, July.
    17. Simplice A. Asongu & Jacinta C. Nwachukwu & Gilbert A. A. Aminkeng, 2014. "China’s Strategies in Economic Diplomacy: A Survey of Updated Lessons for Africa, the West and China," Research Africa Network Working Papers 14/036, Research Africa Network (RAN).
    18. Koku, P. Sergius & Farha, Allam Abu, 2020. "Other sources of FDIs in Sub-Saharan Africa: The case of Gulf Cooperation Council states," Journal of Business Research, Elsevier, vol. 119(C), pages 619-626.
    19. Simplice Asongu & Jacinta C. Nwachukwu & Gilbert A. A. Aminkeng, 2014. "China’s Strategies in Economic Diplomacy: A Survey of Updated Lessons for Africa, the West and China," Working Papers of the African Governance and Development Institute. 14/036, African Governance and Development Institute..
    20. Tomasz Dorożyński & Anetta Kuna-Marszałek & Janusz Świerkocki, 2017. "Motives of Poland's Outward Direct Investments from the Lodz Region: Results of a Direct Study," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 5(2), pages 101-122.
    21. Mourao, Paulo Reis, 2018. "What is China seeking from Africa? An analysis of the economic and political determinants of Chinese Outward Foreign Direct Investment based on Stochastic Frontier Models," China Economic Review, Elsevier, vol. 48(C), pages 258-268.
    22. Simplice Asongu & Jacinta Nwachukwu & Gilbert Aminkeng, 2018. "Lessons from a Survey of China’s Economic Diplomacy," AFEA Working Papers 18/008, African Finance and Economic Association (AFEA).
    23. Sahiti Arben & Ahmeti Ard & Sahiti Arbana, 2020. "FDI Trends and Characteristics in Kosovo," Baltic Journal of Real Estate Economics and Construction Management, Sciendo, vol. 8(1), pages 12-21, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lee Robinson & Alice Nicole Sindzingre, 2012. "China’s Ambiguous Impacts on Commodity-Dependent Countries: the Example of Sub-Saharan Africa (with a Focus on Zambia)," EconomiX Working Papers 2012-39, University of Paris Nanterre, EconomiX.
    2. Dong, Baomin & Guo, Guixia, 2013. "A model of China's export strengthening outward FDI," China Economic Review, Elsevier, vol. 27(C), pages 208-226.
    3. Chen, Yuhuilin & Gunessee, Saileshsingh & Hua, Xiuping, 2022. "Emerging market multinationals’ pursuit of strategic assets through cross-border acquisitions," Research in International Business and Finance, Elsevier, vol. 63(C).
    4. Le Chang & Jing Li & Kee-Cheok Cheong & Lim-Thye Goh, 2021. "Can Existing Theories Explain China’s Outward Foreign Direct Investment in Belt and Road Countries," Sustainability, MDPI, vol. 13(3), pages 1-17, January.
    5. Peter J Buckley & L Jeremy Clegg & Hinrich Voss & Adam R Cross & Xin Liu & Ping Zheng, 2018. "A retrospective and agenda for future research on Chinese outward foreign direct investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(1), pages 4-23, January.
    6. De Beule, Filip & Duanmu, Jing-Lin, 2012. "Locational determinants of internationalization: A firm-level analysis of Chinese and Indian acquisitions," European Management Journal, Elsevier, vol. 30(3), pages 264-277.
    7. Abdul Sattar & Temesgen Hordofa Tolassa & Muhammad Noshab Hussain & Muhammad Ilyas, 2022. "Environmental Effects of China’s Overseas Direct Investment in South Asia," SAGE Open, , vol. 12(1), pages 21582440221, February.
    8. Flora Rencz, 2023. "The determinants of Chinese foreign direct investment in the European Union," Asia Europe Journal, Springer, vol. 21(3), pages 331-349, September.
    9. Katarina Blomkvist & Rian Drogendijk, 2013. "The Impact of Psychic Distance on Chinese Outward Foreign Direct Investments," Management International Review, Springer, vol. 53(5), pages 659-686, October.
    10. Ibrahim Ismail Ismail, 2016. "Constructing a Framework for Empirical Research of Foreign Direct Investment (FDI) and FDI Intent," Journal of International Business Research and Marketing, Inovatus Services Ltd., vol. 1(2), pages 43-46, January.

    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:wjabxx:v:14:y:2013:i:2:p:75-84. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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/wjab20 .

    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.