Foreign direct investment among developing markets and its technological impact on host: Evidence from spatial analysis of Chinese investment in Africa

2021 ◽  
Vol 166 ◽  
pp. 120593
Author(s):  
Dengfeng Hu ◽  
Kefei You ◽  
Bulent Esiyok
Keyword(s):  
Foreign Direct Investment ◽  
Spatial Analysis ◽  
Direct Investment ◽  
Chinese Investment ◽  
Developing Markets ◽  
Technological Impact

Economic Policy Uncertainty, Bilateral Investment Treaties, and Chinese Outward Foreign Direct Investment

2021 ◽  
Vol 94 (3) ◽  
pp. 519-557
Author(s):  
Yue Lu ◽  
Linghui Wu ◽  
Ka Zeng
Keyword(s):  
Economic Policy ◽  
Foreign Direct Investment ◽  
Host Country ◽  
Direct Investment ◽  
Policy Uncertainty ◽  
Outward Foreign Direct Investment ◽  
Bilateral Investment Treaties ◽  
Economic Policy Uncertainty ◽  
Chinese Investment ◽  
Investment Treaties

This paper examines the effect of bilateral investment treaties (BITs) in promoting Chinese outward foreign direct investment (COFDI) in the presence of rising economic policy uncertainty in China's partner countries. We postulate that the signing of BITs should help stimulate COFDI because the treaties send a credible signal to foreign investors about the host country's intent to protect Chinese investment, and make it more difficult for the host country to violate its treaty obligations. BITs that contain rigorous investment protection and liberalization provisions, in particular, should be more likely to encourage COFDI as they directly influence Chinese investors' expectations about the stability, predictability, and security of the host market. However, while BITs generally promote COFDI, host country economic policy uncertainty may also limit their effectiveness. This is because uncertainty tends to undermine investor confidence, trigger capital flows from high- to low-risk countries, and dampen commercial activities. Poisson pseudo-maximum likelihood (PPML) estimation models of the determinants of COFDI to 188 countries between 2003 and 2017 lend substantial support to our conjectures.

The Politics of Chinese Foreign Direct Investment in the USA

2019 ◽  
Vol 55 (2) ◽  
pp. 254-272 ◽  
Author(s):  
Kelan (Lilly) Lu ◽  
Glen Biglaiser
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Chinese Firms ◽  
Chinese Investment ◽  
Greenfield Investments ◽  
The Us ◽  
The Usa ◽  
Chinese Foreign Direct Investment ◽  
Subnational Analysis

Although recently Chinese investment in the USA has grown exponentially, it has not flowed equally among the US states. Controlling for popular explanations in the foreign direct investment literature, we carry out subnational analysis to assess the determinants of Chinese investment in the USA. Using a panel dataset for all states from 2006 to 2016, we find that Chinese firms are more attracted to states where Republican governors hold office. Republican-governed states particularly attract greenfield investments from Chinese firms. However, we also find that US national security concerns and Chinese goals appear to affect investment flows in high-technology states, limiting the role of partisanship. Our results indicate that it is too soon to dismiss the importance of politics on foreign direct investment.

Chinese investment in India will grow

2018 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Content Type ◽  
Chinese Investment ◽  
Cross Border ◽  
Bilateral Relations ◽  
Chinese Companies ◽  
Border Dispute ◽  
Security Relationship

Subject Chinese investment in India. Significance China is one of the fastest-growing sources of foreign direct investment (FDI) in India. The two countries are trying to stabilise bilateral relations that deteriorated after a tense 73-day border dispute in mid-2017. Impacts Chinese companies’ demand for Mandarin-speaking manpower in India will rise. With India having launched e-business visas for Chinese nationals, cross-border business trips will increase. Delhi’s deepening security relationship with Washington, Tokyo and Canberra will prompt distrust in Beijing.

Chinese Investment in the European Football Industry

2020 ◽  
pp. 1392-1413
Author(s):  
Sue Claire Berning ◽  
Daniel Maderer
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
Outward Foreign Direct Investment ◽  
Chinese Firms ◽  
Chinese Investment ◽  
Football Clubs ◽  
European Football ◽  
Cross Case Analysis ◽  
Football Industry

Outward foreign direct investment of Chinese firms in developed markets is a relatively new phenomenon. Since December, 2014 when the Chinese government announced a major investment program in sports, Chinese firms have particularly focused on foreign direct investments in the European football industry. We analyze the investment patterns, the determinants, and the motives of six investment cases of Chinese Outward Foreign Direct Investment (OFDI) undertaken in European football clubs. Based on Dunning's OLI paradigm and the determinants-framework from Holtbrügge and Kreppel, a within-case and cross-case analysis was conducted. We reveal that the main motives of Chinese investments differ between asset-seeking and market-seeking to a combination of both. The most important determinants of OFDI were the size of the host market and the level of know-how in it, while firm-specific resources and the strategic importance of the industry for the home government was a joint determinant for all Chinese companies.

Sino-substitution: Chinese foreign direct investment in Zambia

2014 ◽  
Vol 7 (2) ◽  
pp. 90-109 ◽  
Author(s):  
Stuart John Barton
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
English Language ◽  
Primary Data ◽  
Special Economic Zones ◽  
Content Type ◽  
Chinese Investment ◽  
Elite Interviews ◽  
Chinese Foreign Direct Investment ◽  
Economic Zones

Purpose – This paper aims to establish the level (if any) of Chinese State influence on setting the terms of Foreign Direct Investment in Zambia, specifically their influence on improving access for Chinese investors through the establishment of Special Economic Zones. Design/methodology/approach – The paper presents a process trace to test primary archival data and elite interviews against growing academic and popular “China in Africa” literature. Findings – After examining primary data, existing academic and popular literature is found to poorly describe China’s economic influence in Zambia, primarily by largely speculating on non-evident coercive investment practices. Instead, the paper concludes that similarities between new Chinese investment and retreating Western sources in Africa can better be described as “Sino-Substitution”. Research limitations/implications – The primary research has focused on English language Zambian sources; access to further Chinese sources would improve the breadth of the study. Practical implications – The study has found the terms of new Chinese investment in Zambia to be far more calculated, consensual and symbiotic than described in the existing literature. This more balanced view of Chinese investment is important if other foreign investors are to retain or regain competitive advantage in the region. Originality/value – No existing research has traced empirically the process through which the Zambian Government developed Special Economic Zones into the country’s largest investment vehicle, or how Chinese investment came to dominant capital flows within them. As investment in these zones grows, a better understanding of the Zambia–China relationship should help other investors compete, and improve Zambia’s access to capital.

EU scrutiny of Chinese investment will increase

2018 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Investment Decisions ◽  
European Council ◽  
Content Type ◽  
Chinese Investment ◽  
Exchange Of Information ◽  
European Parliament Elections ◽  
The Eu

Subject Investment screening in the EU. Significance The European Council is likely to vote in the autumn on a Commission proposal to introduce a foreign direct investment (FDI) screening mechanism in the EU. Although member states are divided on this issue, legislation is expected to be adopted by the end of the year. Impacts The proposed mechanism could complicate EU-China relations. It would enable more coordination and exchange of information on national foreign investment decisions. If the mechanism is not adopted by the end of the year, it could be significantly delayed due to the May 2019 European Parliament elections.

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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