Does One Belt One Road Strategy Promote Chinese Overseas Direct Investment?

72 Pages Posted: 17 Aug 2017

See all articles by Julan Du

Julan Du

The Chinese University of Hong Kong (CUHK) - Department of Economics

Yifei Zhang

Beijing Normal University-Hong Kong Baptist University United International College; The Chinese University of Hong Kong (CUHK) - Department of Economics

Date Written: April 11, 2017

Abstract

In response to the One Belt One Road (OBOR) initiative, China’s overseas direct investment (ODI), especially mergers and acquisitions, rose significantly in the belt-road countries, especially the land-based ones. Comparatively speaking, state-controlled acquirers played a leading role in infrastructure sectors, whereas the non-state-controlled acquirers were particularly active in non-infrastructure sectors. Central and West Asia, Western Europe and Russia are favorable destinations of Chinese ODI in the belt-road countries. The host countries have adopted a positive and friendly attitude toward Chinese acquisitions. The whole or majority ownership acquisitions rose significantly, and an increasing number of state-controlled targets were acquired by Chinese enterprises.

Keywords: One Belt One Road, Cross-Border Acquisitions, Greenfield Investment

JEL Classification: F21, F55

Suggested Citation

Du, Julan and Zhang, Yifei, Does One Belt One Road Strategy Promote Chinese Overseas Direct Investment? (April 11, 2017). Available at SSRN: https://ssrn.com/abstract=3019207 or http://dx.doi.org/10.2139/ssrn.3019207

Julan Du

The Chinese University of Hong Kong (CUHK) - Department of Economics ( email )

Shatin, N.T.
Hong Kong

Yifei Zhang (Contact Author)

Beijing Normal University-Hong Kong Baptist University United International College ( email )

28 Jinfeng Road
Tangjiawan, Guangdong
United States

The Chinese University of Hong Kong (CUHK) - Department of Economics ( email )

Shatin, N.T.
Hong Kong

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