Qiu Licheng:The Urbanization of Host Countries and China's Outward FDI

Date of publication:2016-3-18There have been0A reader to read the article

The Urbanization of Host Countries and China’s Outward Foreign Direct Investment

Abstract    Urbanization is an important factor of demand. This paper examines the effects of urbanization in host countries on China’s outward foreign direct investment. After analyzing the data on China’s outward foreign direct investment in 158 countries from 2003 to 2013, we found that the level of the host country’s urbanization has an inverse relationship to China’s outward foreign direct investment, while the speed of the host country’s urbanization and China’ s outward foreign direct investment have a direct relationship. As for the threshold effect of a host country’s urbanization level on China’s outward foreign direct investment, we found the typical characteristics of Northam’s three stages. Finally, we suggest that China should invest internationally in accordance with the level and circumstances of urbanization in a particular host country.

 

This paper is published in Journal of International Trade, NO.4, 2016.