Research On The Distribution And Its Influence Factors Of Chinese Enterprises In Africa

The Go Abroad strategy was introduced in2000. In the same year, the first Forum on China Africa Cooperation was hold in Beijing. Since then there is a great increase of Chinese enterprises that invest in Africa. The stock of Chinese FDI in Africa was about4462million USD in2007, while the number reached13042million USD in2010, increasing43%per year. Similarly, there were only37Chinese enterprises that directly invested in Africa. After7years, this number raised sharply to1445. It means that Africa has been an important destination of the Chinese enterprises that go abroad. Meanwhile Africa is one of the continents that Chinese enterprises are widely distribution. The statistics of2010shows that Chinese enterprises directly investment can be found in50African countries. There are two key questions need to answer: What the distribution of Chinese enterprises in Africa is like? What are the influence factors of location distribution? It is wealth doing a research on above questions so that give the enterprises some information to increase the efficiency and lower the risks of FDI in Africa.With the data from the Commerce Department, Chinese enterprises that directly invest in Africa are divided into natural resource enterprises, construction enterprises and others from the view of the investment field, while central SOEs (state own enterprises), general SOEs and private enterprises by the right of control. And then the location distributions of all kinds of enterprises are shown. Based on the analysis before, natural resource, market size, infrastructure conditions, relationship between host country and China are chosen as the influence factors of enterprises’location distribution in Africa, the influence of political risk of host country is also been test. The-result shows that natural resource and market size have a great influence on enterprises’location distribution, while the influence of infrastructure is limited. The influence of political risk of host country is not significant.