scholarly journals China’s outward foreign direct investment in energy sector: The role of “intimate” relations between countries

PLoS ONE ◽  
2021 ◽  
Vol 16 (7) ◽  
pp. e0254199
Author(s):  
Na Tan ◽  
Liang Chang ◽  
Rui Guo

Based on the data of China’s outward foreign direct investment (OFDI) in energy sector to 133 countries from 2005 to 2014, this paper uses a gravity model to investigate the impact of “intimate” relations on China’s OFDI locations in energy sector. We find that the “intimate” relations have significant effects on China’s OFDI locations in energy sector, namely: bilateral senior leaders’ visits, institutional distance, genetic distance, and immigration. Holding other factors fixed, for each one more bilateral senior leaders’ visit between China and the host country, China’s OFDI in energy sector for the host country will increase by 5.44%. If the genetic distance from China and host country increases by 1%, China’s OFDI in energy sector will fall by 1.69%. For every 1% increase in the institutional distance between China and host country, China’s energy OFDI will decrease by 1.09%. For every 1% increase in a country’s immigration to China, China’s energy OFDI will increase by 0.46%. Further, after distinguishing developed and developing countries, we find that compared with developed countries, “intimate” relations have greater impacts on China’s energy OFDI in developing countries. Finally, based on the dominance analysis, considering China’s “intimate” relations with countries along the “Belt and Road” and current locations of China’s OFDI, we find that China should further expand energy investment in countries along the “Belt and Road”.

2020 ◽  
pp. 1-19
Author(s):  
A. K. M. Mohsin ◽  
Hongzhen Lei ◽  
Hasanuzzaman Tushar ◽  
Syed Far Abid Hossain ◽  
Mohammad Ebrahim Hossain ◽  
...  

2017 ◽  
Vol 7 (1) ◽  
pp. 24-42 ◽  
Author(s):  
Lin Zhang ◽  
Zheqian Xu

Abstract In order to examine the impact of cultural and institutional distance on China’s OFDI towards the One Belt, One Road (OBOR) area, the paper selects 28 countries along The Belt and Road. The empirical results using panel data from 2006-2014 indicate that institutional distance is negatively correlated with China’s outward foreign direct investment (OFDI). At the same time, cultural distance interacts with bilateral trade, resulting in a “benefit of foreignness” effect.


Desafíos ◽  
2020 ◽  
Vol 32 (1) ◽  
Author(s):  
Samuel Spellmann ◽  
Alexandre César Cunha Leite

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.


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