Research On The Determinants Of Chinese FDI In Middle East Based On Belt & Road Initiative

Recently,Chinese economy takes more and more attention at many scholars,especially in the field of the international trade and internalization.As we know China go a brood and open economy policy in 1979,moreover,Chinese firms go global,we can say the internalization,and foreign direct investment has rising Chinese economic power in a world economy.In the era of foreign direct investment,China successfully attracting foreign direct investment,on the other hand,its play a huge role in the outwards foreign direct investmentAccording to MOFCOM,the amount of Chinese FDI inflows increase dramatically from $ 2.7 billion in 2002 with global ranking 26 in the whole world,to reach $145.67 billion by the end of 2015,with global ranking the second county behind the united states.We can note the roles of Chinese FDI toward the world economy.On the other hand,the amount of Chinese FDI stock rise from$ 25 billion in 2002 with global ranking 25,to reach $ 1,0697.8 billion at the end of 2015(MOFCOM 2015),with global ranking eighth among nations,standing as the second largest among developing economies.Furthermore,in 2013 the Chinese president Xi Jinping,when he visits southeast and central Asia domain,he calls for jointly "Silk Road Economic Zone" and "21st Century Maritime Silk Road"(referred to one belt and one road).Moreover,he has made a major strategic concept of this initiative.In March.2014,Chinese premier Li Keqiang on March 5,2014,made in the government work report put forward to plan and build the Silk Road economic zone and the 21st century Maritime Silk Road.At present,the "one belt and one road" initiative go away from the theoretical design,the overall framework to complete the strategic planning,began to enter the pragmatic cooperation stage.The idea is to pass from navigation and navigation.Which will mainly affect the railway,aviation,navigational,agriculture,trade and circulation,oil and gas exports and other industries,the new Silk Road is occurring created,more than a thousand years ago the trade model Is in a new look back.China from the past to join APEC,the World Trade Organization,and other system products.It is clear that this is a clear example of the change in international trade that creates opportunities for its development and today becomes the main source of power to promote regional and global trade liberalization and investment facilitation.To encourage the implementation of the "One Belt and one road" major initiativeChinese Ministry of Commerce jointly issued a "to promote the Silk Road economic zone and the 21st century maritime Silk Road vision and action",put forward "one belt and one road " construction is a systematic project.In the aim of build And actively promote the development strategy along one belt and one road nations,with each other,by the way,it,make Asia-Africa non-African countries more closely and mutually beneficial cooperation To a new historical height.China is drawing a global free trade zone network map;the network will be based on the surrounding,radiation "along the way" to build the framework of China's free trade zone strategy.This thesis tries to explore the determinants of Chinese foreign direct investment,in Middle East countries after joined one belt and one road initiative,especially in Middle East Region,to achieve our aim we use PANEL DATA approach with GMM model because it fit the small sample of data in this study.This study covers the period 2003-2015,and this was because of data availability which is a major problem in most of the Chinese foreign direct investment studies.The structure of this study is designed as follows;chapter one the introduction of the study,it includes Chapter 2 focus on the literature review on the determinants of foreign direct investment.chapter 3 presents theoretical background of FDI,Chapter 4 presents a Brief Analyses of Chinese OFDI present&problems,Chapter 5 presents Chinese OFDI across one belt&road countries,Chapter 6 presents the estimation of the determinants of Chinese outwards FDI as penal data approach with GMM model,chapter7 presented the conclusion and policy implementation.The empirical study found that Chinese foreign direct investment has a positive sign with growth domestic product per capita as it proxy of market size,trade as a proxy for economy open,inflation rate as a proxy of economic environmental,quality of port as a proxy for transportation facilities and literacy rate as a proxy for labour quality,on other hand,Chinese foreign direct investment have a negative sign with capital formation as a proxy of infrastructure,economic growth rate as proxy of potential economy development and Research&development expenditure rate as a proxy of technology.Finally,this study argues that Chinese Foreign direct investment is market size seeking,strategic and geographical seeking,resource seeking in Middle East nations joined one belt&road.,it not labor cost seeking,Technology and economic stability seeking across One Belt&One Road,especially in the Middle East.