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http://dx.doi.org/10.13106/jafeb.2020.vol7.no2.157

China's Outward Foreign Direct Investment Patterns: Evidence from Asian Financial Markets  

HE, Yugang (Department of International Trade, Jeonbuk National University)
CHOI, Baek-Ryul (Department of International Trade, Jeonbuk National University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.2, 2020 , pp. 157-168 More about this Journal
Abstract
Since the economic crisis sweeps across the world in 2008, the foreign direct investment of various countries has been greatly impacted. Therefore, this paper regards China as an example to analyze China's outward foreign direct investment patterns in terms of Asian financial markets with a panel data over the period 2003-2017. We mainly focus on the money market oriented outward foreign direct investment and foreign exchange market oriented outward foreign direct investment. Using the individual fixed effect model to conduct empirical analyses, the empirical findings indicate that China will reduce its foreign direct investment amount to a country with large money supply and China will increase its foreign direct investment amount to a country with large foreign exchange reserves. Furthermore, when a country has signed Free Trade Agreement with China, China will increase more foreign direct investment amount to these countries than that of a country who has not signed Free Trade Agreement with China. Moreover, the empirical findings indicate that no matter what the money market oriented outward foreign direct investment or foreign market oriented outward foreign direct investment, China will reduce its foreign direct investment amount to these Asian countries due to the global economic crisis.
Keywords
Outward Foreign Direct Investment Patterns; Asian Financial Markets; Global Economic Crisis; Individual Fixed Effect Model; Free Trade Agreement;
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Times Cited By KSCI : 4  (Citation Analysis)
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