China's outward FDI: an industry-level analysis of host country determinants ; presented at CESifo Venice Summer Institute Workshop on 'China and the Global Economy Post Crisis', July 2011

In: CESifo working paper series 3688

In: Empirical and theoretical methods

Abstract

We provide an empirical analysis of host country determinants of Chinese outward FDI for the period 2003 to 2008, using data disaggregated by country and industry. We want to assess the relevance of market-seeking, resource-seeking and strategic asset seeking motivations suggested by the theory on FDI determinants. Our results show that only FDI in manufacturing is attracted by market seeking motivations. As expected, resource seeking is an important motivation for Chinese FDI in resource related sectors, which usually refers to countries with political fragile environments. Strategic asset seeking motivations are relevant for both manufacturing and services.