The Determinants Of China's OFDI To Central Asia

Chinese outward foreign direct investment(OFDI)is expanding today at an unprecedented rate:it has soared over the past decade from almost nothing to more than USD 127 billion with its footprint in 156 countries in 2014(UNCTAD 2016).With the transformation and strengthening of the Chinese economy and the development of Chinese enterprises,the objective of investment has shifted from acquiring production factors such as resources to acquiring advanced technology and brands.This shift in focus is aimed at increasing the international competitiveness of Chinese companies and meeting the changing domestic consumption behavior.In this regard,this paper is intended to augment the understanding of the determinants of Chinese OFDI to one particular region adjacent to China-Central Asia-on the basis of analyzing the determinants of Chinese OFDI to Kazakhstan beginning from the implementation of "go out" policy in China(???),till present by performing a multiple regression analysis.The paper is organized as follows.Chapters 1 and 2 provide a full picture of Chinese OFDI flows in the world;contain an overview of the regulatory framework for outward investment in China,as well as outline the current trends with a detailed description of the geographic and sectoral distribution of Chinese investment in Central Asia with regard to OBOR initiative implementation.Chapter 3 provides an analysis of Chinese investment to Kazakhstan by investigating the determinants or motives of Chinese investment to the most developed Central Asian country.An economic model is proposed and six home-country variables are tested as determinants of Chinese OFDI.The variables are selected within the general framework of Dunning's eclectic paradigm(Dunning 2001).Significant determinants of Chinese ODI to Kazakhstan are revealed and empirical findings along with concluding remarks are presented.