Study On The Influence Factors Of China’s Foreign Direct Investment In Africa

As the world second largest continent,Africa has abundant natural resources,cheap labor and broad market.In recent years,African governments frequently introduce policies to attract foreign investment,Africa has become the new focus of global foreign investment.The stock of China’s direct investment in Africa has grew to $32.35 billion from 2003 to 2014.This unusually rapid growth attracts wide attention from domestic and foreign scholars due to China’s special national conditions,political and economic systems.However,most of current literature on Chinese direct investment in Africa are theoretical,the empirical analysis are rare.Therefore,we hope that we can form a systematic framework at studying China’s direct investment in Africa through reading literature extensively and collecting data.And we want to focus on empirical analysis in order to make up for the lack of domestic research on this aspect.Based on classical FDI and new economic geography theories,we first introduce the development,current situation such as the scale and industrial distribution,and the motivation of China’s direct investment in Africa.Then we choose 29 Africa countries as the objects,and make empirical analysis on the factors affecting China’s direct investment in Africa from 4 different angles-economic geography,resources,risk and system by using panel data model.The results show that China’s direct investment in Africa is not simply for getting the natural resources of Africa.The factors that influence China’s direct investment in Africa include the market size of host countries,the capital intensity,the labor intensity,the level of infrastructure,the economic risk and the economic system,but the impact direction of economic risk does not match our expect. China’s direct investment in Africa shows strong risk preference.Besides,Trade and China’s system also play an important role in China’s direct investment in Africa.