scholarly journals China’s Economic Emergence and Implications for Africa

2019 ◽  
pp. 19-34
Author(s):  
Linda Yueh
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Middle East ◽  
Central Asia ◽  
Direct Investment ◽  
Belt And Road Initiative ◽  
The World ◽  
Belt And Road ◽  
Sub Saharan ◽  
The Belt And Road

China’s emergence as the world’s second-largest economy has transformed the world economy by creating a source of consumers as well as a place for production. As is consistent with becoming a major economy, China has become a net capital exporter, investing more abroad than it receives in inward foreign direct investment. The clearest manifestation of this outward investment is seen in the ‘Going Global’ policy for Chinese firms launched in the early 2000s and in the Belt and Road Initiative that began to invest in infrastructure overseas in 2013. The latter has significant implications for Africa as well as the Middle East, eastern parts of Europe, and South-east and Central Asia. This chapter explores the drivers of China’s emergence as an economic superpower and analyzes its wider potential impact, including on sub-Saharan Africa’s economic development, notably in respect of Chinese infrastructure investment in Kenya.

scholarly journals The Trend of Reduced Chinese Investments in the Belt and Road Initiative: Spending Contentions and Preparations for an Upcoming Financial Crisis

Desafíos ◽  
2020 ◽  
Vol 32 (1) ◽  
Author(s):  
Samuel Spellmann ◽  
Alexandre César Cunha Leite
Keyword(s):  
Foreign Direct Investment ◽  
Financial Crisis ◽  
Direct Investment ◽  
Outward Foreign Direct Investment ◽  
Belt And Road Initiative ◽  
Belt And Road ◽  
The Belt And Road

Este artículo busca establecer explicaciones para el cambio en el patrón de inversiones presentado en el flujo de inversión directa no financiera (IED) de China en la Nueva Ruta de la Seda (NRS). En primer lugar, la reducción de las inversiones en nrs se verifica a través del análisis del Statistical Bulletin of China’s Outward Foreign Direct Investment entre los años 2013 y 2016. Después, al tratar de explicar la reducción del flujo de ied no financiera de China a nrs, este artículo analiza dos hipótesis. Primero, retrata las medidas actuales de control del gasto público de China, que abordan el crecimiento del exceso de capacidad del país, mientras discute las similitudes entre la economía china y la crisis japonesa de principios de la década de 1990. Posteriormente, contempla la posibilidad de que los preparativos realizados por las autoridades chinas se contrarresten por la inestabilidad anticipada de los mercados mundiales. La confluencia de estos factores ayuda a explicar la reducción del flujo no financiero de ied a nrs, que contrasta con la tendencia contemporánea hacia la inversión china en el mundo durante el mismo período.

scholarly journals China’s One Belt and One Road Initiative and Outward Chinese Foreign Direct Investment in Europe

2019 ◽  
Vol 11 (24) ◽  
pp. 7055 ◽  
Author(s):  
Degong Ma ◽  
Chun Lei ◽  
Farid Ullah ◽  
Raza Ullah ◽  
Qadar Bakhsh Baloch
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
European Countries ◽  
Belt And Road Initiative ◽  
Upward Trend ◽  
Belt And Road ◽  
Chinese Foreign Direct Investment ◽  
The Belt And Road

For the last few years, the execution of the Belt and Road Initiative (hereinafter referred to as the BRI) and China’s outward foreign direct investment (hereinafter referred to as OFDI) in Europe have seen a significant upward trend. For our current paper, we collected empirical data pertaining to China’s OFDI and foreign trade (gathered from 21 European countries in the trade gravity market for the period 2003 to 2016) that yielded the following results: (a) China’s OFDI to Europe has significantly promoted international trade between China and European countries. On the other hand, OFDI has equally promoted China’s exports to European counties, while it has not encouraged China’s imports from European counties. (b) The Belt and Road Initiative has had a positive impact on China’s exports to European counties and has had a negative impact on China’s imports from European counties. (c) There have been both complementary trade impacts and substitution trade impacts when China has directly invested in European countries, but the complementary impact was much stronger than its substitution impact in the chosen sample period.

scholarly journals Pattern and Influencing Factors of Foreign Direct Investment Networks between Countries along the “Belt and Road” Regions

2019 ◽  
Vol 11 (17) ◽  
pp. 4724 ◽  
Author(s):  
He ◽  
Cao
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Influencing Factors ◽  
Direct Investment ◽  
Bilateral Trade ◽  
Evolution Process ◽  
Quadratic Assignment ◽  
Investment Pattern ◽  
Belt And Road ◽  
The Belt And Road

With the in-depth implementation of the “Belt and Road” initiative (BRI), the investment patterns between Belt and Road countries have also become more complicated. The impact of this complex investment network on regional economic development is also growing. To reveal the complexity of this investment pattern, and to better promote the sustainable development of the region’s economy, this paper used the complex network method to study the foreign direct investment(FDI) network of 50 countries along the Belt and Road from 2003 to 2017, revealing its structural and behavioral characteristics and evolution process. The results showed that the imbalance of the investment network structure is outstanding, and preferential selection behavior is obvious. The Central and Eastern European countries show significant clustering behavior. In addition, the network evolved slowly and followed the “Pareto rule” in the early stages of its evolution. The BRI was a turning point in the evolution process. On this basis, the quadratic assignment procedure (QAP) regression analysis method was used to further study the factors affecting the formation process of this investment pattern. It found that economic development level, geographical distance, and bilateral trade were the main influencing factors. Among them, bilateral trade had the greatest impact on the pattern of network.

scholarly journals Does the Belt and Road Initiative Reduce the R&D Investment of OFDI Enterprises? Evidence from China’s A-Share Listed Companies

2019 ◽  
Vol 11 (5) ◽  
pp. 1321 ◽  
Author(s):  
Yahui Chen ◽  
Changsheng Xu ◽  
Ming Yi
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Marginal Effect ◽  
Mechanism Analysis ◽  
Belt And Road Initiative ◽  
Return On Assets ◽  
Negative Effect ◽  
Belt And Road ◽  
D Investment ◽  
The Belt And Road

Existing studies on the Belt and Road Initiative (BRI) primarily explain its impact on foreign trade, foreign direct investment and economic development of the countries concerned, whereas its impact on the performance of outward foreign direct investment (OFDI) enterprises has rarely been examined. By considering the BRI as exogenous policy shock, this paper analyzes the mechanism and impact of the BRI on the research and development (R&D) investment of China’s OFDI enterprises investing in countries along the Belt and Road. With propensity score matching and a difference-in-difference approach, it tackles the endogeneity problem caused by self-selecting into the BRI enterprise group. The estimates indicate that BRI has not effectively promoted the R&D investment of OFDI enterprises, but plays an inhibitory role in the short term, and the marginal effect increases firstly and then decreases. Further mechanism analysis shows that the BRI leads to the addition of overseas revenue and the reduction of return on assets, which are the main reasons for the decrease of the R&D investment. In addition, the ownership heterogeneity analysis finds a higher negative effect on the state-owned enterprises, while a smaller effect on non-state-owned enterprises.

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