Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/26666
Authors: 
Cheung, Yin-Wong
Qian, Xingwang
Year of Publication: 
2009
Series/Report no.: 
CESifo working paper 2621
Abstract: 
We investigate the empirical determinants of China's outward direct investment (ODI). It is found that China's investments in developed and developing countries are driven by different sets of factors. Subject to the differences between developed and developing countries, there is evidence that a) both market seeking and resources seeking motives drive China's ODI, b) the Chinese exports to developing countries induce China's ODI, c) China's international reserves promote its ODI, and d) the Chinese capital tends to agglomerate among developed economies but diversify among developing economies. Similar results are obtained using alternative ODI data. We do not find substantial evidence that China invests in African and oil-producing countries mainly for their natural resources.
Subjects: 
market seeking
resources seeking
servicing exports
international reserves
agglomeration effect
JEL: 
F21
F36
O53
Document Type: 
Working Paper

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