Foreign Investment by Multinationals from Emerging Countries: The Case of China

Abstract

China has become a leading foreign investor among all emerging countries, however, the existing literature seldom deals with this important topic. Based upon both macro and micro data, this paper attempts to fill this gap. In particular, the paper focuses on such critical issues on the topic: What are the motivations for Chinese multinationals to invest abroad? While investing abroad, how do they differ from others? And how do FDI theories explain the investment activities? The results of this study shed some light on the question of foreign investment by Chinese companies, thereby contributing to the existing literature on multinationals from emerging countries.