Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212826 
Authors: 
Year of Publication: 
2015
Series/Report no.: 
BOFIT Discussion Papers No. 16/2015
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
Our study examines home drivers of China's regional outward FDI. We propose a theoretical framework that incorporates an extended Investment Development Path (IDP) theory, home locational constraints, policy incentives and geographic factors. Empirically, we employ the Bayesian Averaging Maximum Likelihood Estimates method to address model uncertainty. All proposed theories (except for geographic aspects) are found to provide important perspectives explaining China's regional outward FDI. Our results highlight the importance of government policies but do not support the original IDP hypothesis that outward investment is automatically generated as income grows. Our findings have implications for both regional and central-government policy.
JEL: 
F21
R11
C11
C23
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-046-0
Document Type: 
Working Paper

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