FDI outflow - in the case of China
Liu 00
2014-May 24th
EMA Econometrics
Fudan University/School of Economics
Research Paper
FDI outflow, the case of China
Submitted by
Liu 01
FDI outflow in the case of China
EMA Student, Fudan University
Abstract
Since the opening in 1978, China became the biggest FDI recipient of the developing countries worldwide. There is no doubt, this condition will keep going. But recently a reversed movement attracted more and more attention. Using the Dunning model, the rapid growth emerging countries can explain the recent movements in FDI flows from developing countries into developed countries. China became a big player in both attracting FDI as well as FDI outflow. The goal of this paper is to highlight the changes in economic status of a country, which encourages FDI outflow. My research clearly shows the current stage of
China’s economy and its impact on the net FDI. In the case of china also political influences played an important role, which makes it a unique and incomparable case.
Liu 02
1. Introduction
There are several ways whereby firms could expand their activities into a country different from their own. They could export the goods they have produced, franchise or license their activities and methods of production to a foreign business or make FDIs. But since the late
1960s, what one has been observing is their learning towards FDI. Production abroad has become a more and more important activity. There have been indeed increases in world FDI flows. What are the motivations underlying firms decisions to settle subsidiaries abroad.
Furthermore, FDI inflows are getting more and more important to developing countries like
China. China remains the predominant recipient of inward FDI among developing countries.
Its growth of FDI has been dramatic since the beginning of the economic reforms in 1978.
Starting from a base of less than US$ 19 billion in 1990, the stock of FDI inflow in China has risen to almost US$ 689 billion until 2006. FDI flows to China
2014-May 24th
EMA Econometrics
Fudan University/School of Economics
Research Paper
FDI outflow, the case of China
Submitted by
Liu 01
FDI outflow in the case of China
EMA Student, Fudan University
Abstract
Since the opening in 1978, China became the biggest FDI recipient of the developing countries worldwide. There is no doubt, this condition will keep going. But recently a reversed movement attracted more and more attention. Using the Dunning model, the rapid growth emerging countries can explain the recent movements in FDI flows from developing countries into developed countries. China became a big player in both attracting FDI as well as FDI outflow. The goal of this paper is to highlight the changes in economic status of a country, which encourages FDI outflow. My research clearly shows the current stage of
China’s economy and its impact on the net FDI. In the case of china also political influences played an important role, which makes it a unique and incomparable case.
Liu 02
1. Introduction
There are several ways whereby firms could expand their activities into a country different from their own. They could export the goods they have produced, franchise or license their activities and methods of production to a foreign business or make FDIs. But since the late
1960s, what one has been observing is their learning towards FDI. Production abroad has become a more and more important activity. There have been indeed increases in world FDI flows. What are the motivations underlying firms decisions to settle subsidiaries abroad.
Furthermore, FDI inflows are getting more and more important to developing countries like
China. China remains the predominant recipient of inward FDI among developing countries.
Its growth of FDI has been dramatic since the beginning of the economic reforms in 1978.
Starting from a base of less than US$ 19 billion in 1990, the stock of FDI inflow in China has risen to almost US$ 689 billion until 2006. FDI flows to China