China's Outward Direct Investment in Africa
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal
Related Research Unit(s)
|Journal / Publication||Review of International Economics|
|Publication status||Published - May 2012|
|Link to Scopus||https://www.scopus.com/record/display.uri?eid=2-s2.0-84859809749&origin=recordpage|
The empirical determinants of China's outward direct investment (ODI) in Africa are examined using an officially approved ODI dataset and a relatively new OECD-IMF format ODI dataset. China's ODI is found responding to the canonical economic determinants that include the market seeking motive, the risk factor, and the resources seeking motive. It is also affected by the intensity of trade ties and the presence of China's contracted projects. A host country's natural resources have an impact on China's decision on how much to invest in the country rather than on whether to invest in the country or not. China's drive for Africa's natural resources is mainly a recent phenomenon and, probably, became prominent after the "Going Global" policy adopted in 2002. © 2012 Blackwell Publishing Ltd.