Gravity analysis of outward Chinese FDI - tests of the Silk Road effect
|Author:||Mgr. Peng Liu|
|Year:||2021 - winter|
|Leaders:|| Ing. Vilém Semerák M.A., Ph.D.
|Work type:|| CSF - Corporate Strategy and Finance
|Awards and prizes:|
|Abstract:||New Silk Road is a strategy of China to make more trade, investment as well as other
activities in different fields with more countries, which points out the new direction
for China's future investment. In 2019, Chinese firms have invested US$ 15.04 billion
directly in 56 countries along the One Belt and One Road in non-financial industries.
The FDI from China to OBOR countries can be influenced by many factors. This
paper would study the investment characteristics of Chinese FDI during recent years
and use an extended gravity model to analyze the factors that can influencing FDI.
By taking "One Belt and One Road" countries as research objects and adopting the
extended gravity model, this paper find which factors are attractive for Chinese FDI to
OBOR countries. On the other hand, the article also calculates the investment potential
index, which plays a specific complementary role in the research of China's FDI in
different areas and finally give policy reference for Chinese FDI.