Do Institutional Quality and Natural Resources Affect the Outward Foreign Direct Investment of G7 Countries?

2022 ◽  
Author(s):  
Bashir Muhammad ◽  
Muhammad Kamran Khan
Keyword(s):  
Foreign Direct Investment ◽  
Natural Resources ◽  
Direct Investment ◽  
Institutional Quality ◽  
Outward Foreign Direct Investment ◽  
G7 Countries

scholarly journals Natural Resources and Foreign Direct Investment in Africa: Evidence from Chinese Firms

2020 ◽  
Vol 12 (22) ◽  
pp. 9616
Author(s):  
Yan Chen ◽  
Ruirui Zhai ◽  
Kevin H. Zhang
Keyword(s):  
Foreign Direct Investment ◽  
Natural Resources ◽  
Direct Investment ◽  
Chinese Government ◽  
Outward Foreign Direct Investment ◽  
The West ◽  
Testing Hypotheses ◽  
Poor Countries ◽  
Chinese Investment

The rise of China’s outward foreign direct investment (OFDI) in Africa has promoted the continent’s economic growth but generated controversy in the West. What drives Chinese investment in the continent with abundant natural resources but poor institutions/governance? While the topic is important, studies on the issue in the literature have been limited. This paper attempts to close the gap by testing hypotheses of the role of resources and institutions with panel data in 2003–2013. Estimates suggest that the Chinese investment is not biased toward resource-rich and institution-poor countries but similar to Western investment, and China’s OFDI is largely profit-driven, just like investors from other countries. Institutional supports from the Chinese government, however, seems to be important to China’s OFDI in Africa.

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