| Publication |
2011.
|
| Summary/Abstract |
Chinese outward direct investment (ODI) is expanding at an unprecedented rate. The present study augments the understanding of the determinants and drivers of Chinese ODI. It reviews the literature on Chinese ODI and analyzes investment by state-owned enterprises (SOE) for the period 2003-2008, focusing specifically on the differences between the determinants of Chinese investment in developed (OECD) and developing (non-OECD) economies. In addition, the study assesses the appropriateness of the general framework used for investigating ODI determinants (Dunning's eclectic paradigm) to analyze the experience of Chinese SOE. The findings indicate that Dunning's eclectic paradigm provides an excellent theoretical framework for analyzing the determinants of Chinese SOE investment in developed countries, and provides a good starting point for analysis of Chinese investment in developing countries. However, Dunning's specification requires refinement for developing countries. This paper finds a distinct difference between the motivations for Chinese SOE investment in developed and developing countries.
|