Abstract
We investigated the role of Chinese Aid in mitigating the political risk for Chinese outward foreign direct investment (OFDI) in Africa, especially in resource-abundant countries. Using panel data for 50 African countries that have received Chinese OFDI from 2002 to 2012, we tested two hypotheses developed based on the two-tier bargaining model proposed by Ramamurti (2001). Our results indicated that Chinese aid had a positive moderating effect on the relationship between political risk and OFDI in those resource-abundant countries. However, such a moderating effect was negative for all African countries. Theoretical and managerial implications following on from this study are discussed.
| Original language | English |
|---|---|
| Pages (from-to) | 82-98 |
| Journal | Africa Journal of Management |
| Volume | 3 |
| Issue number | 1 |
| Online published | 18 Feb 2017 |
| DOIs | |
| Publication status | Published - 2017 |
| Externally published | Yes |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 10 Reduced Inequalities -
SDG 17 Partnerships for the Goals
Research Keywords
- Africa
- China
- FDI
- international aid
- political risk
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