Political Risk and Chinese Outward Foreign Direct Investment to Africa : The Role of Foreign Aid
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 82-98 |
| Journal / Publication | Africa Journal of Management |
| Volume | 3 |
| Issue number | 1 |
| Online published | 18 Feb 2017 |
| Publication status | Published - 2017 |
| Externally published | Yes |
Link(s)
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.
Research Area(s)
- Africa, China, FDI, international aid, political risk
Citation Format(s)
Political Risk and Chinese Outward Foreign Direct Investment to Africa : The Role of Foreign Aid. / Lu, Jane; Huang, Xueli; Muchiri, Michael.
In: Africa Journal of Management, Vol. 3, No. 1, 2017, p. 82-98.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
