The determinants of Chinese outward foreign direct investment to developing countries
The determinants of Chinese outward foreign direct investment to developing countries

Summary/Abstract: The outward foreign direct investment (OFDI) from China has increased significantly in recent years. This article examines the determinants of Chinese OFDI to developing countries. The data from 2003 to 2010 has been collected from 20 developing countries – the biggest receivers of Chinese investments from the developing world. The analysis is based on the results of the polled ordinary least square model. The model variables have been chosen on the basis of the general FDI theories and included host country GDP, openness to trade, bilateral trade with China, natural resource richness, strategic assets, host country political risk and distance from China. The empirical research shows that GDP, openness to trade and resource-richness are positively related to Chinese OFDI, whereas other variables are negatively related.

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