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Motivations of Chinese outward direct investment: The sector perspective

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Abstract

From the sector perspective of mining, manufacturing and services, the motivations of Chinese outward direct investment (further ODI) are discussed during the period from 2001 to 2012, acknowledging different host countries and firms’ ownership structures. The estimated results justify that the location determinants of Chinese ODI differ between sectors, which implies the motivation behind such investment may vary. As expected, resource-seeking is the most important motivation for Chinese ODI in mining sector; market- and strategic asset-seeking motivations are possessed by both manufacturing and services sectors. The probability of the host country receiving Chinese FDI, as well as high FDI openness and frequent bilateral trade with China is favorable for doing business. Results also suggest that the factors increasing the probability of a country being chosen as a location for Chinese ODI vary between different host countries, as do different ownership structures.

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Author information

Authors and Affiliations

  1. School of Economics and Management, Beihang University, Beijing, 100191, China

    Yali Wang

  2. Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing, 100190, China

    Yanmin Shao

  3. Center for Forecasting Science, Chinese Academy of Sciences, Beijing, 100190, China

    Yanmin Shao

Authors
  1. Yali Wang
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  2. Yanmin Shao
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Corresponding author

Correspondence to Yanmin Shao.

Additional information

This research was supported by the National Natural Science Foundation of China under Grant No. 71103177 and National Center for Mathematics and Interdisciplinary Sciences, Chinese Academy of Sciences.

This paper was recommended for publication by Editor WANG Shouyang.

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Wang, Y., Shao, Y. Motivations of Chinese outward direct investment: The sector perspective. J Syst Sci Complex 29, 698–721 (2016). https://doi.org/10.1007/s11424-015-4147-4

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  • DOI: https://doi.org/10.1007/s11424-015-4147-4

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