The determinants of China’s outward foreign direct investment: a vector error correction model analysis of coastal and landlocked countries
An essential objective of China’s outward foreign direct investment (OFDI) is to expand international trade and access to overseas markets to garner resources and improve transportation routes. This study identifies the determinants of China’s OFDI activities in the short and long term, focusing on...
| Main Authors: | , , , , , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2022
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/163002 |
| _version_ | 1826110466094530560 |
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| author | Liu, Yanfeng Su, Miao Zhao, Jinjing Martin, Sally Yuen, Kum Fai Lee, Choong‑Bae |
| author2 | School of Civil and Environmental Engineering |
| author_facet | School of Civil and Environmental Engineering Liu, Yanfeng Su, Miao Zhao, Jinjing Martin, Sally Yuen, Kum Fai Lee, Choong‑Bae |
| author_sort | Liu, Yanfeng |
| collection | NTU |
| description | An essential objective of China’s outward foreign direct investment (OFDI) is to expand international trade and access to overseas markets to garner resources and improve transportation routes. This study identifies the determinants of China’s OFDI activities in the short and long term, focusing on 138 countries that are part of China’s Belt and Road Initiative (BRI). It is the first study to evaluate the system’s contribution of location determinants, including the four factors of economy, logistics, energy, and politics, to China’s OFDI by employing a vector error correction model with panel data from 2007 to 2019. In addition, we compare the influence of the variables in coastal and landlocked countries. Panel Granger causality and impulse response tests, variance decomposition, and forecast analysis were conducted to analyze and forecast China’ OFDI. The results show that China’s OFDI in both coastal and landlocked countries is statistically sensitive to the variables of economy, energy, logistics, and politics in host countries engaged in the BRI. It also shows that improving logistics infrastructure and the political investment environment in landlocked countries, this can positively attract China’s OFDI. |
| first_indexed | 2024-10-01T02:34:53Z |
| format | Journal Article |
| id | ntu-10356/163002 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T02:34:53Z |
| publishDate | 2022 |
| record_format | dspace |
| spelling | ntu-10356/1630022022-11-15T04:10:48Z The determinants of China’s outward foreign direct investment: a vector error correction model analysis of coastal and landlocked countries Liu, Yanfeng Su, Miao Zhao, Jinjing Martin, Sally Yuen, Kum Fai Lee, Choong‑Bae School of Civil and Environmental Engineering Engineering::Maritime studies OFDI Locational Determinants An essential objective of China’s outward foreign direct investment (OFDI) is to expand international trade and access to overseas markets to garner resources and improve transportation routes. This study identifies the determinants of China’s OFDI activities in the short and long term, focusing on 138 countries that are part of China’s Belt and Road Initiative (BRI). It is the first study to evaluate the system’s contribution of location determinants, including the four factors of economy, logistics, energy, and politics, to China’s OFDI by employing a vector error correction model with panel data from 2007 to 2019. In addition, we compare the influence of the variables in coastal and landlocked countries. Panel Granger causality and impulse response tests, variance decomposition, and forecast analysis were conducted to analyze and forecast China’ OFDI. The results show that China’s OFDI in both coastal and landlocked countries is statistically sensitive to the variables of economy, energy, logistics, and politics in host countries engaged in the BRI. It also shows that improving logistics infrastructure and the political investment environment in landlocked countries, this can positively attract China’s OFDI. 2022-11-15T04:10:48Z 2022-11-15T04:10:48Z 2022 Journal Article Liu, Y., Su, M., Zhao, J., Martin, S., Yuen, K. F. & Lee, C. (2022). The determinants of China’s outward foreign direct investment: a vector error correction model analysis of coastal and landlocked countries. Economic Change and Restructuring. https://dx.doi.org/10.1007/s10644-022-09407-2 1573-9414 https://hdl.handle.net/10356/163002 10.1007/s10644-022-09407-2 2-s2.0-85129477123 en Economic Change and Restructuring © 2022 The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature. |
| spellingShingle | Engineering::Maritime studies OFDI Locational Determinants Liu, Yanfeng Su, Miao Zhao, Jinjing Martin, Sally Yuen, Kum Fai Lee, Choong‑Bae The determinants of China’s outward foreign direct investment: a vector error correction model analysis of coastal and landlocked countries |
| title | The determinants of China’s outward foreign direct investment: a vector error correction model analysis of coastal and landlocked countries |
| title_full | The determinants of China’s outward foreign direct investment: a vector error correction model analysis of coastal and landlocked countries |
| title_fullStr | The determinants of China’s outward foreign direct investment: a vector error correction model analysis of coastal and landlocked countries |
| title_full_unstemmed | The determinants of China’s outward foreign direct investment: a vector error correction model analysis of coastal and landlocked countries |
| title_short | The determinants of China’s outward foreign direct investment: a vector error correction model analysis of coastal and landlocked countries |
| title_sort | determinants of china s outward foreign direct investment a vector error correction model analysis of coastal and landlocked countries |
| topic | Engineering::Maritime studies OFDI Locational Determinants |
| url | https://hdl.handle.net/10356/163002 |
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