China's Outward Direct Investment in Africa |
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| Authors: | Yin‐Wong Cheung Jakob de Haan Xingwang Qian Shu Yu |
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| Affiliation: | 1. Department of Economics and Finance, City University of Hong Kong, Hong Kong;2. De Nederlandsche Bank, PO Box 98, 1000 AB Amsterdam, The Netherlands;3. Economics and Finance Department, SUNY Buffalo State College, Buffalo, NY 14222, USA |
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| Abstract: | The empirical determinants of China's outward direct investment (ODI) in Africa are examined using an officially approved ODI dataset and a relatively new OECD–IMF format ODI dataset. China's ODI is found responding to the canonical economic determinants that include the market seeking motive, the risk factor, and the resources seeking motive. It is also affected by the intensity of trade ties and the presence of China's contracted projects. A host country's natural resources have an impact on China's decision on how much to invest in the country rather than on whether to invest in the country or not. China's drive for Africa's natural resources is mainly a recent phenomenon and, probably, became prominent after the “Going Global” policy adopted in 2002. |
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