China’s Outward Foreign Direct Investment and Economic Growth in Developing Countries

The implementation of China’s open development strategy has unveiled a wave of outward foreign direct investment(OFDI)by Chinese companies,with global implications.Based on panel data from 146 developing countries from 2003 to 2017,we investigate the growth effects of China’s OFDI.We find that China’s OFDI has promoted significant economic growth in developing countries.Not only could China’s OFDI increase GDP per capita of a country in a short time but raise the country’s long-run equilibrium value as well.In addition,the growth effects of China’s OFDI were more significant for countries with weak governance,rich resource,and modest human capital,and were above the average level for Belt and Road Initiative(BRI)countries,African countries,and in the post-crisis era.Our research helps unravel the global significance of Chinese companies investing overseas and contributes to research on the growth effects of direct investment between developing countries.

An Empirical Study on the Relationship Between the Scale of International Students from ASEAN and China’s Outward Foreign Direct Investment

With the further development of economic globalization since the establishment of ties between China and the Association of Southeast Asian Nations(ASEAN) 30 years ago and the continuous increase in the scale of international students in China,the training of international talents has become an important approach to avoiding the risks of transnational investments.We established panel data by selecting variables from the period 2006 to 2017,including the scale of international students coming from ASEAN to China,the gross amount of China’s outward foreign direct investment(OFDI),and the GDP per capita of ASEAN countries to further explore the correlations among these variables.We applied a panel-vector autoregressive(PVAR) model to conducting a Granger causality test,a Gaussian mixture model(GMM) regression analysis,a Monte Carlo-based impulse response analysis,and variance decomposition of the data.The results show that the growth of OFDI exerted an obvious positive impact on the inflow of international students from the countries along the Belt and Road(B&R) within a short period,the growth of the scale of international students coming from these countries to study in China had a strong positive effect on OFDI,the training of international talents was conducive to promoting the scale of transnational investments,but the overall quality was not very high,and its economic contribution rate was low.It is also found that OFDI and the scale of international students from the countries along the B&R promoted the GDP growth to a certain extent and the positive accumulation effect fluctuated due to external factors.Therefore,it is suggested to expanding the scale of OFDI and improving China’s core competitiveness in international student education.Intensive management of investment factors should also be conducted along with sound development of training mechanisms for international talents.

Impact of China’s outward foreign direct investment on environmental pollution in the home country

In the context of economic globalization and increasingly tight resource and environmental constraints,the environmental effect of open economy has been highly concerned by the academic community.With the implementation of the“Going Global”campaign and the“Belt and Road Initiative”,China’s OFDI has been expanding.What is the impact of the rapid growth of OFDI on the home environment?How can China improve the quality and level of OFDI in order to promote domestic green development under the dual context of constructing a new dual circulation development pattern and advocating green development?These questions deserve further discussion.Most of the existing literature focuses on the empirical interpretation of OFDI’s home country environmental effect by using linear models,while few involve nonlinear models.The literature on the important role of financial development in home country and the threshold effect of OFDI on home country environment is even less common.In view of this,based on the mechanism of argumentation and propositional inference,this paper calculated the environmental pollution index of 30 provinces in China from 2003 to 2017 by using China’s provincial panel data of these years and selecting industrial waste water,industrial waste gas,industrial SO_(2),and industrial soot emissions and industrial solid waste production amount index.Then,this paper empirically studied China's OFDI home environment of financial development threshold effect by constructing financial development as the threshold variables panel threshold model.The results showed that:①China’s OFDI had a significant impact on the environment of the home country,based on the level of financial development of the home country.When China’s financial development level was lower than the first threshold value,China’s OFDI had a significant restraining effect on environmental pollution in the home country.When China’s financial development level crossed the first threshold value but did not exceed the second threshold value,China’s OFDI significantly enhanced its inhibiting effect on environmental pollution in its home country.When China’s financial development level was higher than the second threshold value,the inhibiting effect of China’s OFDI on environmental pollution in the home country was further enhanced.②In the sample period,the financial development level of most provinces in China was not high.Only a few provinces with high financial development level had a strong inhibiting effect on environmental pollution in their home country,and the provinces with a high degree of coupling and coordination between OFDI and financial development tended to have a low level of environmental pollution.Accordingly,this paper proposes to optimize the financial service environment of OFDI,improve the green technology content of OFDI,and strengthen the original innovation and re-innovation ability of green technology.

FOREIGN DIRECT INVESTMENT AND ITS IMPACT ON CHINA'S ECONOMY: A RESEARCH APPRAISAL

Foreign direct investment (FDI) and the development of the hosted nations is a major issue facing researchers in many disciplines, especially in economic geography. This paper reviews the current available literature pertaining to the impact of FDI on the economic development in China, and emphasizes four points. First, although China is the second largest of FDI recipient and one of the fastest growing nations in the world, it has not drawn enough attention of researchers on the topic. And very few publications are found specifically focusing on the economic impact of FDI. Second, many areas of the impact of FDI have remained untouched. Particularly, there are needs for further studies to address the impact of FDI on efficient use of resources and overall competitiveness of the country. Third, in the theoretical aspect, research should explore the nature of bargaining power of all participants. Finally, it is suggested to select a number of case study areas and foreign funded enterprises for in depth studies.

Comparative Analysis of the Determinants of China's State-owned Outward Direct Investment in OECD and Non-OECD Countries

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 0191 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.

Chinese Outward Direct Investment:Is There a China Model?

Chinese outward direct investment （ODI） appears to differ from that of advanced economies. Is there a unique China model？ By reviewing industry distributions of ODI data for 2003-2009, we found that Chinese ODl was not concentrated in industries that performed well either in exporting or domestically. Statistical analyses also confirmed that traditional variables, such as market size, production cost and legal environment, did not impact Chinese investors＂ choice of location for ODI. lnstead, investors selected places where they couM either learn advanced technologies or secure stable commodity supplies. We have tentatively concluded that the main purpose of the China model of OD1 has not been to expand production overseas but to strengthen industries at home.

Deepening China's Investment System Reform——The State Development Investment Corporation

The Chinese government set up the State Development Bank against the background of the Chinese economic system being transformed from planned to market. In May 1995, the State Development Investment Corporation was established. Does this mean that China’s investment system reform is advancing at a much

Effects of investment on energy intensity:evidence from China

This article explores the effects of investment upon energy intensity by applying a unique panel data of China's 27 provinces between 2004 and 2013.In addition,it also particularly stuthes other factors,such as energy price,economic structure,and urbanization.The results,based on four econometric regression model results,suggest that in general,the indigenous investment on research and development is a more powerful tool to decrease China's energy intensity regardless of region disparity.The foreign direct investment(FDI) has a prominent but not persistent effect on energy intensity.However,the outward direct investment has not shown its significant impact on energy intensity.At the level of an aggregate economy and China's eastern region,the results demonstrate that FDI improves energy efficiency significantly.For the central and western provinces,FDI does not support the similar conclusion.Based on these analyses,we present the corresponding regional policies for policymakers.

Forty Years Development of China's Outward Foreign Direct Investment:Retrospect and the Challe nges Ahead

Outwardforeign direct investment(OFDI)has increasingly become an important method for China to integrate into the world economy.This paper comprehensively reviews and analyzes policy development and the changing pattern of China's OFDI over the past 40 years.We divide the development into"restricted”(1978-1999),"relaxed"(2000-2016)and"regulated",(2017 onwards)stages.This paper also reviews literature on the impact of Chinese OFDI on China and host countries.Despite its generally positive effects,large-scale and unbalanced OFDI activities have alarmed Chinese policymakers.Both developing and developed host countries have expressed their concern over national security and the misbehavior of some Chinese overseas enterprises.Therefore,greater supervision and adjustment from quantity to quality growth is necessary for the future development of China's OFDI.

Exporting National Champions:China's Outward Foreign Direct Investment Finance in Comparative Perspective

We examine the extent to which Chinese development banks have financed the globalization of China＇s ＂national champion ＂firms： specifically, through outward foreign direct investment （OFDI）. We create a database of Chinese fnance for OFDI and compare our results to the existing literature and available data on Japan, Korea and other Asian nations. We estimate the total value of China＇s OFDI finance from 2002 to 2012 at US$14Obn. As a percentage of total OFDI, China＇s lending is roughly three times higher than Japan ＇s, the previous global leader in OFDl finance. We identify two major reasons for China＇s high （31 percent） ratio of OFDl lending to total OFDI. First, China has a greater incentive to give OFDI loans than Japan or Korea ever did because its borrowers are statelowned so it can more easily channel funds to targeted areas. Second, China has a greater capacity to give OFDI loans because it has significantly higher savings and foreign exchange reserves than Japan and Korea.

Determinants of China’s outward foreign direct investment in Asia:a panel data analysis

This paper is an attempt to examine the trends and significant determinants of China’s outward foreign direct investment(OFDI)in Asia.In order to find out the important determinants of China’s OFDI in Asia,this study applies the panel data regression technique.The time period from 2006 to 2015 is taken into consideration.Econometric analysis has been done based on three data sets:the first includes 27 Asian countries/regions which attract Chinese OFDI.While Chinese Hong Kong is excluded from the sample,the second data set consists of 26 countries the same as those in data set one.The third data set comprises China’s top 12 destination countries of OFDI in Asia.The findings show that China’s OFDI has risen rapidly and secured the second rank globally,only behind the United States and surpassing Japan.For the first time,the flow of Chinese OFDI exceeded the level of inward foreign direct investment(IFDI),and Asia attracted a 74.4%share out of China’s total OFDI in 2015.The results reveal that inflation rate,export,import,corruption,infrastructure and geographic distance are the significant determinants of China’s investment in Asia.This paper provides new evidence on the determinants of China’s OFDI in Asia.By using currently available data of 27 Asian host countries,this paper offers a new insight into significant determinants of China’s OFDI in the region.

China’s foreign direct investment in BRICS countries:status,problems and prospects

The emerging economies,represented by the BRICS,have risen rapidly in post-crisis era in both economic development and national competitiveness.In order to ensure a stable and sustainable long-term development of national economy,the governments of BRICS countries have shown positive attitude to foreign direct investment.This is a great opportunity for China to increase its direct investment in these countries,which will not only provide strong support to China’s“going global”strategy,but also help avoid risks arising from intensive investment in its traditional investment regions.This article focuses on the status of Chinese outward direct investment in the BRICS countries by analyzing existing problems in investment process and providing forecast as well as future agenda on China’s direct investment in these countries.

State-owned Enterprises' Outward Investment and the Structural Reform in China

Since China＇s accession to the WTO in 2001, China has been on a steep learning curve in terms of engaging in outward direct investment, and state-owned enterprises （SOEs） have played a predominant role in this drive. We argue that investment overseas by SOEs is a double-edged sword as far as its impact on domestic reform is concerned. Investing overseas offers opportunities to deepen structural reform in China, but such investment could also strengthen the monopoly position of some SOEs, which is inconsistent with the objective of domestic reform. Therefore, it is important for China to deepen domestic reform with respect to competition, ownership and regulations, to maximize the benefits from investing overseas＇. The present paper also discusses how building market-compatible institutions will resuh in increased innovation. This provides opportunities for Chinese firms to effectively catch up with the advanced technologies to remain competitive in overseas markets.

Foreign Direct Investment with Chinese Characteristics:A Middle Path Between Ownership-Location-Internalization Model and Linkage-Leverage-Learning Model

The majority of multinational enterprises （MNEs） traditionally originate from developed countries. In the last ten years, however, there has been dramatic growth in foreign direct investment （FDI） from China. It is a comparatively new phenomenon that challenges the classic FDI theories. In this paper, we review the pros and cons of two important theories, known as the Owner- ship-Location-Internalization （0LI） model and Linkage-Leverage-Learning （LLL） model, and use the statistical data and company case studies from China to test the plausibility of these two models. We believe that neither of them suits totally： the OLI model is quite use- fill for understanding FDI from China to developing economies, while the LLL model is more powerful for explaining the FDI to de- veloped economies. We argue that the companies from China attain a very advantageous position as intermediates in the global economy They may catch up with the first movers if they integrate OLI-led and LLL-led FDI within one firm. This combination can bring to- gether the most advanced knowledge acquired in developed economies with the knowledge about adaptation needs and the needs for cost reduction in production as expressed in developing economies. It may also accelerate the knowledge transfer globally. We thus fill a gap in research into the geographical pattern of Chinese FDI and offer a deeper understanding of the internationalization of Chinese MNEs and revolving knowledge transfer.

东道国投资便利化及其对中国对外直接投资的影响——基于空间杜宾模型的实证检验

通过构建投资便利化指标体系,运用熵值法测度103个国家的投资便利化水平,并对其空间竞争性和β收敛情况进行分析,运用空间杜宾模型实证检验投资便利化对中国对外直接投资的空间效应。结果表明,全球国家的投资便利化水平稳步提升,但不同类型国家投资便利化指数的动态演进差异性较大,非“一带一路”国家和OECD国家的投资便利化水平更高,但其特征分化也更明显;投资便利化指数存在空间竞争性和β收敛,而空间因素能够加快收敛速度。东道国投资便利化提升不仅显著促进中国对东道国的直接投资增长,而且存在显著的空间溢出效应,其中,营商环境的空间溢出效应最明显,金融服务环境的空间溢出效应次之。本文揭示的东道国投资便利化的时空特征为中国对外直接投资高质量发展提供了实证依据。

“一带一路”背景下中国对非直接投资与农产品出口三元边际的影响研究

随着“一带一路”倡议的深入推进,中非之间的合作交流日益紧密。基于“一带一路”背景,本文研究发现中国对非洲直接投资与农产品出口三元边际的关系如下:中国对非直接投资对扩展边际并不显著,即中国出口非洲商品种类并没有显著作用;中国对非洲直接投资与中国出口非洲农产品价格边际具有负相关关系,即中国对非直接投资越多,出口非洲农产品价格越低;中国对非洲直接投资与中国出口非洲数量边际具有正相关关系,即中国对非直接投资越多,出口规模越大;但是“一带一路”对两者之间的调节作用并不显著,本研究仅供参考。

中国对非援助的分配流向——基于对非投资和经济距离的视角

近年来,中国作为国际上新晋的“援助者”受到了广泛关注。采用2000—2014年中国对非洲53个国家提供援助的跨国面板数据,从对非投资和经济距离视角尝试分析中国对非援助分配的实际流向。研究结果表明:中国对非援助在首先考虑了受援国是否坚持一个中国基本原则之后,一方面立足长远照顾了经济距离较远的远亲关系,这种“舍近求远”的援助范式与中国式“工业强国”脱贫发展理念同源,体现了援助的帮扶本质。另一方面兼顾当前利益强化了经济距离较近的近邻关系,有助于获取本国投资收益,实现中非双方合作共赢。这种现象在官方援助、以发展为目的的援助和直接拨款的援助上表现得更为明显。细分行业看,中国的援助主要流向与中国基础设施行业间经济距离较小、制造业间经济距离较大的国家和地区。机制分析表明,对非投资通过改善受援国的发展潜力、发展风险以及发展基础等渠道显著影响中国对非援助的分配。中国援助分配偏好的规范选择和理性驱动双重属性使得这种新兴的国际开发合作范式更有利于中非各国发展的“友好共生”。

中欧投资协定升级对中欧贸易的影响——基于OFDI的中介效应分析

在中欧CAI谈判完成的背景下,文章概括了中国对欧盟OFDI及中欧贸易特征,总结了中欧BITs升级的政策背景及主要内容。基于2003—2019年的面板数据,通过构建中国对欧盟OFDI的中介效应模型,实证分析中欧BITs升级对中欧贸易的影响。研究发现:中欧BITs升级产生贸易创造效应,中国对欧盟OFDI发挥完全中介作用,且中国对欧盟OFDI产生的进口贸易创造效应更强,这将有利于减少欧盟对中国的贸易逆差。中方应积极参与国际投资规则变革,加大投资开放力度,中欧双方需加快推进中欧CAI批约进程,力争推动该协定早日签署生效。

“一带一路”倡议实施对中国在东盟直接投资的影响研究

对外直接投资是“一带一路”建设的核心环节和重要手段。东盟作为“一带一路”倡议实施的重要支点,是“一带一路”倡议实施的优先发展区域和关键领域。因此,推进中国与东盟在投资合作领域的发展成为“一带一路”倡议实施的重要环节,不仅给新型国际区域经济合作提供试验区,而且为“一带一路”倡议实施的推进提供示范区,还为中国与东盟双边经贸关系提供广阔的政策空间,也为人类命运共同体的构建提供样本。“一带一路”倡议实施的过程中,中国在东盟的直接投资规模整体处于稳定的上升状态。现阶段,随着RCEP的正式生效和中国-东盟全面战略伙伴关系的确定,中国-东盟自贸区升级版如何在“一带一路”背景下拓展投资合作领域和合作层次,并将“一带一路”建设纳入已有的合作框架,成为中国和东盟深化投资合作的重要内容。