The Impact Of China’s FDI On Venezuela’s Economy

Prior investigations have treated the topic of the Venezuelan-China relationship through the analysis of diplomatic relations of both Venezuela and China.Other investigations represent a significant development within this particular field of study through the provision of resourceful data related to Venezuela’s oil production in barrels per year and the profit made from said production.This research represents an academic yet accurate prediction of the current socio-political situation of the between the Caribbean nation,and the People’s Republic of China,stating that the current economic situation of Venezuela-as a result of a series of poor government decisions,and faulty industry development-discourages the Asian nation,in its exponential economic growth,to invest in what once was the most economically powerful country in Latin America.It is through a quantitative correlational analysis,that this groundbreaking research analyzes the impact of China’s Investments decisions,on the Latin country,more specifically on Venezuela’s GCF as the main variable of the study,and how the variations on the Asian nation’s GDP and crude oil imports(as secondary controlled variables)may have an impact on Venezuela’s economy.Said analysis is based on monthly data from 1999 to 2013 which was further encrypted through a seasonal adjustment,for data accuracy purposes.The results showed that there was a statistically significant impact on Venezuela’s economy as a result of Chinese FDI.