Determinants of Chinese foreign direct investment in Africa

Kambhampati, U. ORCID: https://orcid.org/0000-0001-5906-2394 and Utesch-Xiong, F. (2022) Determinants of Chinese foreign direct investment in Africa. Journal of African Business, 23 (4). pp. 833-850. ISSN 1522-9076 doi: 10.1080/15228916.2021.1954446

Abstract/Summary

We investigate the role of institutions in attracting Chinese FDI into Africa. Focusing on market- and resource-seeking motivations, we consider whether the impact of institutions varies by motivation for FDI. Our data relates to 43 African countries over 11 years, and we use the Generalised Method of Moments to show that Chinese MNEs are market-seeking and are attracted by weaker institutions. This negative effect of institutions is especially strong in resource-rich and higher-income countries. Our study also finds that in resource-rich African countries, better infrastructure quality attracts Chinese FDI.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/99170
Identification Number/DOI	10.1080/15228916.2021.1954446
Refereed	Yes
Divisions	Arts, Humanities and Social Science > School of Politics, Economics and International Relations > Economics
Publisher	Taylor & Francis
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