– The purpose of this paper is to identify and analyse determinants of Chinese outward foreign direct investment (OFDI) into a number of African countries for the period 2003-2012.
– A series of panel data models are used to estimate the determinants of Chinese OFDI into eight African countries: Nigeria, South Africa, Zambia, Ghana, Kenya, Algeria, Egypt and the Sudan.
– Results highlighted that Chinese investment in African countries is driven by access to natural resources, and factors related to infrastructure quality and the regulatory environment enforced by host governments.
– To the best of the authors’ knowledge, this is one of the first papers to identify empirical determinants of Chinese OFDI in Africa and it contributes from two perspectives. Firstly, it identifies drivers behind Chinese OFDI, but also importantly from the African perspective helps understand the reasons that attract investment from one of the world’s largest investors into one of the world’s poorest regions, given the emphasis that is placed on foreign direct investment today as an instrument of growth and development.
