Study On The Main Factors Affecting Foreign Investment In Africa

In recent years, with the development of export-oriented economy of China, theinvestment grew rapidly in Africa, but many Western countries’ media attacked on ourinvestment behavior, they thought China’s investment in Africa was a new forms ofcolonialism, China’s main objective was to obtain abundant resources of Africa. Study onthe influence factors of the investment in Africa by our country can answer to the Westernmedia scientifically. It can play a positive role in helping the Chinese government andenterprises to implement the foreign investment policy at the same time.This paper summarizes and combs the theory of foreign direct investment, thenanalyzes the current research about foreign direct investment of China and westerncountries. Then select the USA and France as the representative of the western countries,and compared China, USA, France on the influence factors of Africa investment, launchesthe analysis about the impact factors of foreign direct investment mechanism and results.In the empirical analysis part, we use the the investment panel data of21Africacountries during the period of2003to2012as the study sample. Study on the differences ofthe impact factors of China, U.S and France. The empirical results show that: the bilateralrelations between the investment countries and host countries, the investment country’sdemand of resources, the characteristics of the host country, host country’s politicalsituation are all have a significant influence on the foreign direct investment. However,there are big differences between China and the western countries-the United States andFrance on the significant and symbols of these variables. Because of the lack of reason inforeign direct investment, China has only a few variables significantly, America and Francehave more significant variables. In addition, these three countries are all significant positivecorrelation in the energy factors which strongly responded to western countries’ attack. Thesignificant difference in the factors of politics reflects the different foreign policy indifferent countries.Finally, the paper summarizes the conclusions of empirical analysis, put forwardpolicy recommendations from the two levels of government and enterprises to promote thebilateral sustainable development between China and Africa and guarantee the demand ofChina’s strategic resources.