The determinants of outward foreign direct investment strategies of Chinese energy firms

Xu, Shiteng and Gow, Jeff and Chen, Youzhi and Zhang, Yahua and Huang, Zhibin (2019) The determinants of outward foreign direct investment strategies of Chinese energy firms. Singapore Economic Review, 64 (4). pp. 1019-1036. ISSN 0217-5908


Abstract

This paper investigates the location strategies of Chinese energy firms over the period 2003–2013. The results confirm that market-seeking and resource-seeking are two significant motivations behind Chinese energy firms’ outward foreign direct investment (OFDI). As expected, a higher level of the host country’s energy resource reserves attracts more energy resource related projects and the host country’s renewable energy output influences Chinese firms’ renewable energy investment. However, for OFDI in energy resources, the political stability of the host country is not a significant factor while when investing in renewable energy, it is a significant consideration. Interestingly, for OFDI in energy resources, trade integration measured by the share of exports sold in the host country in China’s total exports, is not statistically significant while for OFDI in renewable energy, trade integration affects the investment decision.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Files associated with this item cannot be displayed due to copyright restrictions.
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Commerce (1 July 2013 -)
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Commerce (1 July 2013 -)
Date Deposited: 28 Jan 2020 05:32
Last Modified: 29 Jan 2020 05:27
Uncontrolled Keywords: Energy projects; investment motivations; location strategies; outward foreign direct investment
Fields of Research : 14 Economics > 1402 Applied Economics > 140205 Environment and Resource Economics
14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1402 Applied Economics > 140209 Industry Economics and Industrial Organisation
Socio-Economic Objective: B Economic Development > 85 Energy > 8599 Other Energy > 859999 Energy not elsewhere classified
Identification Number or DOI: 10.1142/S0217590817450072
URI: http://eprints.usq.edu.au/id/eprint/37453

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