Modern Trends in Chinese Foreign Direct Investment in Africa: An OLI Approach
This study evaluates the subtle differences that the various types of foreign direct investment (FDI) of China in Africa offers, as revealed by the data, using the ‘Ownership, Location and Internalisation Advantages’ OLI approach. Chinese FDI is analysed using source country comparisons, sectoral...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
University of Primorska
2018-09-01
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| Series: | Managing Global Transitions |
| Subjects: | |
| Online Access: | http://www.hippocampus.si/ISSN/1854-6935/16.279-300.pdf |
| Summary: | This study evaluates the subtle differences that the various types of foreign
direct investment (FDI) of China in Africa offers, as revealed by the data,
using the ‘Ownership, Location and Internalisation Advantages’ OLI approach.
Chinese FDI is analysed using source country comparisons, sectoral
comparisons and an investigation of Chinese fdi practices. Data visualisation
techniques and analyses infer similarities and differences between Chinese
and other investors in Africa. These alternativ emethods are
driven by the nature of the available data and its resulting statistical possibilities.
The significance of this study is that it disambiguates the available
data and compares along theory. Many stylised facts are assumed concerning
Chinese FDI; this study, however, quantifies and tests these assumptions.
The results show that China follows investment patterns of other
investors, although heavily skewed towards oil, coal and gas, and other
resource sectors. China otherwise tends to invest in medium growth, diversified
economies, predominantly Nigeria and Egypt; except in Ethiopia
where investment in communications dominates;Cameroon where chemicals
dominate; Angola where investments in real estate outperform investment
in the coal, oil and gas; and in South Africa and Tanzania that have
a more even spread between sectors compared to the rest of the continent. |
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| ISSN: | 1581-6311 1854-6935 |