Abstract
Investments are financial flows that purchase financial and productive assets. Foreign investments are investments in enterprises that operate outside the domestic territory of the investor. These can be classified in two ways: (1) foreign portfolio investments are financial flows that enter equity or bond markets, possibly for a short time, and market prices are usually a fundamental driver for the foreign investor; (2) foreign direct investments (FDIs) involve significant foreign ownership (at least 10 per cent of voting stock) of productive assets. Inward FDI is defined as capital entering an economy attracted by favourable economic factors; outward FDI (sometimes noted as outward direct investment or ODI/OFDI) is a flow of capital moving abroad.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
Asiedu, E. (2006), ‘Foreign direct investment in Africa: The role of natural resources, market size, government policy, i nstitutions and political stability’, The World Economy, vol. 29(1), pp. 63–77.
Benassy-Quere, A., Coupet, M. and Mayer, T. (2005), ‘Institutional Determinants of Foreign Direct Investment’, CEPII, WP No. 2005-05.
Bevan, A. and Estrin, S. (2000), ‘The Determinants of Foreign Direct Investment in Transition Economies’, William Davidson Institute, WP No. 342, October.
Bevan, A. and Estrin, S. (2004), ‘The determinants of foreign direct investment into European transition economies’, Journal of Comparative Economics, vol. 32(4), pp. 775–787.
Blonigen, B. (2005), ‘A review of the empirical literature on FDI determinants’, Atlantic Economic Journal, vol. 33(4), pp. 383–403.
Botric, V. and Skuflic, L. (2005), ‘Main Determinants of Foreign Direct Investment in the South East European Countries’, Second Europhrame Conference on Economic Policy Issues in the European Union — ‘Trade, FDI and Relocation: Challenges for Employment and Growth in the European Union?’, 3 June, Vienna.
Buckley, P., Clegg, J., Cross, A., Liu, X., Voss, H. and Zheng, P. (2007), ‘The determinants of Chinese outward foreign direct investment’, Journal of International Business Studies, vol. 38(4), pp. 499–518.
Campos, N. and Kinoshita, Y. (2003), ‘Why Does FDI Go Where It Goes? New Evidence from the Transition Economies’, International Monetary Fund, Working Paper No. 03/228.
Chou, K. H, Chen, C. H. and Mai, C. C. (2011), ‘The Impact of Third-Country Effects and Economic Integration on China’s Outward FDI’, Economic Modelling, vol. 28(5), September, pp. 2154–2163.
Davies, K. (2010), ‘Outward FDI from China and Its policy context’, Columbia FDI Profiles, Vale Columbia Center on Sustainable International Investment.
Export-Import Bank of China, Annual Reports 2008 and 2010.
Gani, A. (2007), ‘Governance and foreign direct investment links: Evidence from panel data estimations’, Applied Economic Letters, vol. 14(14), pp. 753–756.
Globerman, S. and Shapiro, D. (2002), ‘Global foreign direct investment flows: the role of governance infrastructure’, World Development, vol. 30(11), pp. 1898–1919.
Hallward-Driemaier, M. (2003), ‘Do bilateral investment treaties attract FDI? Only a bit and they could bite’, World Bank Policy Research Paper WPS 3121.
Holslag, J. (2010), ‘China’s Roads to Influence’, Asian Survey, vol. 50(4), pp. 641–662.
Hong, E. and Sun, L. (2006), ‘Dynamics of internationalization and outward investment: Chinese corporations strategies’, The China Quarterly, vol. 187, pp. 610–634.
Information Office of the State Council, The People’s Republic of China (2011), White Paper on China’s Foreign Aid.
Kolstad, I. and Wiig, A. (2009), ‘What determines Chinese outward FDI?’, Chr. Michelsen Institute Working Paper, WP 2009:3.
Lemoine, F. (2011), ‘Les investissements internationaux de la Chine: stratégie ou pragmatisme?’, Revue d’Economie Financière, no. 102 (2–2011), pp. 133–148.
Meyer, K. (2005), ‘Foreign Direct Investment in Emerging Economies’, Policy Discussion Paper, Templeton College, Oxford, December.
Ministry of Commerce, People’s Republic of China (2011), 2010 Statistical Bulletin of China’s Outward Foreign Direct Investment.
Ministry of Foreign Affairs of the People’s Republic of China, Department of European-Central Asian Affairs, http://www.fmprc.gov.cn/eng/. Website accessed on 30 June 2011.
Mlachila, M. and Takebe, M. (2011), ‘FDI from BRICs to LICs: Emerging Growth Driver?’, International Monetary Fund, Working Paper No. 11/178. Neumayer, E. and Spess, L. (2005), ‘Do bilateral investment treaties increase foreign direct investment to developing countries?’, World Development, vol. 33(10), pp.1567–1585.
OECD Investment Compact (2006), ‘Moldova — Foreign Direct Investment and Export Development — Vision and Strategy: 2006–2010’.
TAC (2005–2010), ‘EU-China Economic Observatory’, unpublished reports for the European Commission — DG Relex (in particular Issue 6, December 2007; Issue 8, June 2008; Issue 10, June 2009 and Issue 13, December 2010).
Tondel, L. (2001), ‘Foreign Direct Investment during Transition. Determinants and Patterns in Central and Eastern Europe and the former Soviet Union’, Chr. Michelsen Institute Working Paper, WP 2001:9.
UNCTAD (2009), ‘The Role of International Investment Agreements in Attracting Foreign Direct Investment to Developing Countries’, UNCTAD Series on International Investment Policies for Development, UNCTAD/DIAE/IA/2009/5.
UNESCAP (2009), ‘Directory of Trade Promotion-Development Organizations of Developing Countries and Areas in Asia and the Pacific’, ST/ESCAP/2533.
U.S. Department of State (2011), ‘Investment Climate Statements 2011’, http://www.state.gov/e/eb/rls/othr/ics/2011/index.htm. Website accessed on 30 June 2011.
Wu, H. and Chen, C. (2001), ‘An assessment of outward foreign direct investment from China’s transnational economy’, Europe-Asia Studies, vol. 53(8), pp. 1235–1254.
Copyright information
© 2014 Thierry Apoteker
About this chapter
Cite this chapter
Apoteker, T. (2014). Chinese Investment in the Greater Europe Zone. In: China and the EU in Context. Palgrave Macmillan, London. https://doi.org/10.1057/9781137351869_3
Download citation
DOI: https://doi.org/10.1057/9781137351869_3
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-46918-5
Online ISBN: 978-1-137-35186-9
eBook Packages: Palgrave Business & Management CollectionBusiness and Management (R0)