China's Investments in Africa
Speaker
Abstract
| Extending Cheung et al. (2011), we examine to what extent political considerations and host-country characteristics affect China's Outward Direct Investment (ODI) in Africa. We come up with nine hypotheses on driving factors that are tested using two ODI datasets that differ in formats. Our main findings are that in the Tobit models for the first dataset political variables seem to dominate economic determinants of China's ODI in Africa. The likelihood that a country receives ODI from China increases if the country concerned is a political ally of China, has diplomatic relations with China, is corrupt, democratic, and politically stable. In contrast, for the second dataset, we found for the more recent period, China's ODI in Africa is mainly driven by economic ties (trade and projects), risk, and the dive for natural resources. The Heckman models suggest that the decision to invest in a country is driven by different factors than the decision how much to invest. |
| Contact information: |
| Pierre-Olivier Legault Tremblay |
| Emailhttp://www.erim.eur.nl/ERIM/events/djansen@rsm.nl |
| This research seminar is organised by China Business. |
