What Are The Determinants Of Chinese Foreign Direct Investment In Africa

China's presence in Africa has vastly increased over the past decade by becoming a major player in Africa's inward Foreign Direct Investment which many scholars have been investigating in a different scope of what's impact of China's FDI in African countries but few of them have written about the key factors that attract Chinese FDI.The purpose of this study is based on recent massive China's Foreign Direct Investment to Africa.To identifying what factors attract or the determinant of China's outward FDI into Africa from the period of 2005 to 2014 to find if there is a positive relation with(?)the market size;(?)trade openness;(?)scrutinize the influence of African economic stability on Chinese FDI flows;(?)the relation with Africa political stability;(?)the positive impact on the natural resource endowment;(?)the impact of the infrastructure facilities and the strategies of Chinese firms that are going to Africa and how these are influenced by domestic institutions in China.The empirical findings attempts to predict the level of FDI inflows(as a percent of GDP)as a function of market size(GDP per capita),exchange rates,trade openness,infrastructure,political rights,and natural resource endowment/exploitation.I found that China's investments respond positively to resource seeking,market opportunities ties,and infrastructure.For example,China's OFDI goes to countries with a good market size and good infrastructure.