Localization Patterns of Chinese FDI.

Abstract

A striking aspect of Chinese fdi is its geographical and sectoral diversification. It is exceptionally wide ranging, if we take into account that the People’s Republic of China is a developing country that only recently joined the global economy. Moreover, Chinese multinationals are currently established in both developed countries (the United States, the United Kingdom and Australia) and poor countries (Sudan and Zambia). As a result, this paper seeks to analyze the motives that have led such firms to set up in such diverse countries. At the same time it aims to determine the types of investment made, in order to reveal the patterns of localization.