The determinants of outward foreign direct investment strategies of Chinese energy firms
Article
Article Title | The determinants of outward foreign direct investment strategies of Chinese energy firms |
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ERA Journal ID | 18234 |
Article Category | Article |
Authors | Xu, Shiteng (Author), Gow, Jeff (Author), Chen, Youzhi (Author), Zhang, Yahua (Author) and Huang, Zhibin (Author) |
Journal Title | Singapore Economic Review |
Journal Citation | 64 (4), pp. 1019-1036 |
Number of Pages | 18 |
Year | 2019 |
Place of Publication | Singapore |
ISSN | 0047-5599 |
0217-5908 | |
Digital Object Identifier (DOI) | https://doi.org/10.1142/S0217590817450072 |
Web Address (URL) | https://www.worldscientific.com/doi/abs/10.1142/S0217590817450072 |
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. |
Keywords | Energy projects; investment motivations; location strategies; outward foreign direct investment |
ANZSRC Field of Research 2020 | 380105. Environment and resource economics |
440499. Development studies not elsewhere classified | |
380109. Industry economics and industrial organisation | |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | East China Normal University, China |
School of Commerce | |
Shanghai Administration Institute, China | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q5777/the-determinants-of-outward-foreign-direct-investment-strategies-of-chinese-energy-firms
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