Chen Peiru:The Growth Paths of China’s OFDI

Date of publication:2016-7-28There have been0A reader to read the article

The Growth Paths of China’s OFDI Based on Dual Margins Perspective

Abstract    This article first builds a firm-level decomposition model and decomposes the growth of Chinas outward foreign direct investment into extensive margin and intensive margin using 2007-2014 Chinas investment data. The results show that, overall, the growth of Chinas OFDI relies mainly on investment expansion of extensive marginal contribution. The intensive margin contributes more in Chinas investment in more developed economies such as North America and Europe than in les developed economies such as Asia, Oceania, Africa and Latin America. Investment growth in the Belt and Road countries dominates by intensive margin for a long time,   and the implementation of the Belt and Road initiative will help to reverse this growth path.

 

This paper is published in Asia-pacific Economic Review, No.4, 2016.