The Study On The Influencing Factors Of Chinese Direct Investment In Africa

With the accelerating process of economic globalization and the increasingly fierce of international competition,participation in international investment has become one of the important ways to promote the economic development of all countries in the world.According to statistics,Chinese outward foreign direct investment has been higher than attracting foreign investment for three consecutive years,and the overall size of Chinese direct investment in Africa is also increasing year by year.African abundant labor and mineral resources attract large numbers of Chinese companies to invest in Africa,which can not only overcome domestic resource contradictions,but also create local employment opportunities.Firstly,this paper expounds the theory of outward foreign direct investment,especially the theory applicable to developing countries,and combs the relevant literature at home and abroad,so as to provide theoretical basis and guiding ideology for the following research.Secondly,the current situation of Chinese direct investment in Africa is analyzed from four perspectives,and the factors affecting Chinese direct investment in Africa are summarized from economic and political aspects.On this basis,selecting 29 countries in Africa as research samples,using the flow data of Chinese direct investment in Africa from 2006 to 2016 and constructing a panel data model to do regression testing on the factors of two aspects that may affect Chinese direct investment in Africa,and analyze the regression results.Finally,this paper summarizes the research results and puts forward corresponding policy recommendations.Through the analysis of Chinese direct investment in Africa from 2006 to 2016,it is concluded that: The market size and infrastructure of the host country are positively related to Chinese direct investment in Africa.In terms of resources,from the perspective of investors,finding that the investment of state-owned enterprises is significantly related to natural resources,while the investment of private enterprises pays more attention to labor resources.And the investment of Chinese enterprises in Africa presents the characteristic of resource and market seeking,natural resources are no longer the only important inducing factor.On the political front,African countries with higher political risks and lower market openness are more attractive to Chinese investment.