Return to search

The Determinants of Chinese FDI to developing Countries

Outward foreign direct investment has increased significantly in recent years and a con-siderable part is going to developing countries. This thesis examines the determinants of Chinese outward FDI to developing countries. Data from 2003 to 2008 has been col-lected from 104 developing countries which have received Chinese FDI.The analysis is based on the results of a semi-gravity model. The variables included in the regression are resource-richness, GDP, openness to trade, bilateral trade with China, and distance from Beijing. As expected by the authors, Chinese FDI was found to be strongly correlated with resource-richness and the existence of trade ties between China and the recipient country. Quite disturbingly, the results show a strong relationship be-tween Chinese FDI and corruption. A negative correlation was confirmed for the level of GDP, openness to trade, and distance to Beijing, along with the authors‟ expecta-tions.

Identiferoai:union.ndltd.org:UPSALLA1/oai:DiVA.org:hj-13151
Date January 2010
CreatorsHellblom, Lisa, Thilén, Linda
PublisherInternationella Handelshögskolan, Högskolan i Jönköping, IHH, Nationalekonomi, Internationella Handelshögskolan, Högskolan i Jönköping, IHH, Nationalekonomi
Source SetsDiVA Archive at Upsalla University
LanguageEnglish
Detected LanguageEnglish
TypeStudent thesis, info:eu-repo/semantics/bachelorThesis, text
Formatapplication/pdf
Rightsinfo:eu-repo/semantics/openAccess

Page generated in 0.0014 seconds