China's Outward Direct Investment in Africa

20 Pages Posted: 19 Apr 2012

See all articles by Yin-Wong Cheung

Yin-Wong Cheung

University of California, Santa Cruz - Department of Economics

Jakob de Haan

De Nederlandsche Bank; University of Groningen

Xingwang Qian

State University of New York, Buffalo State

Shu Yu

University of Groningen - Faculty of Economics and Business

Date Written: May 2012

Abstract

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.

Suggested Citation

Cheung, Yin-Wong and de Haan, Jakob and Qian, Xingwang and Yu, Shu, China's Outward Direct Investment in Africa (May 2012). Review of International Economics, Vol. 20, Issue 2, pp. 201-220, 2012, Available at SSRN: https://ssrn.com/abstract=2042431 or http://dx.doi.org/10.1111/j.1467-9396.2012.01017.x

Yin-Wong Cheung (Contact Author)

University of California, Santa Cruz - Department of Economics ( email )

Engineering 2, Department of Economics
University of California
Santa Cruz, CA 95064
United States
831-459-5077 (Fax)

Jakob de Haan

De Nederlandsche Bank

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands

University of Groningen

P.O. Box 800
9700 AH Groningen, Groningen 9700 AV
Netherlands

Xingwang Qian

State University of New York, Buffalo State ( email )

Classroom BLDG B232
1300 Elmwood Ave
Buffalo, NY 14222
United States
716-878-6031 (Phone)
716-878-6907 (Fax)

Shu Yu

University of Groningen - Faculty of Economics and Business ( email )

Postbus 72
9700 AB Groningen
Netherlands

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