Determinants Of Chinese Foreign Direct Investment In Africa:A Panel Data Analysis

Africa has been engaged for several years in a strategy of attracting foreign direct investment in order to encourage foreign firms to come and invest in its territory,convinced of the importance of foreign direct investment for its economic development.People in Africa are becoming increasingly envious of emerging countries’ economic success.The growth of investment from emerging countries in Africa is now at the center of international economic policy.The aim of this study is to determine the various factors that significantly influence the entry of Chinese foreign direct investment and where to invest in Africa.Using panel data,this thesis analyses the stock of Chinese FDI and its determinants for 48 different countries in Africa for the period 2003–2020.Our study concludes that strong human capital,internet penetration,and financial development of host countries have significant effects on attracting Chinese foreign direct investment to Africa.Another central finding is that non-landlocked countries attract more Chinese direct investment.