Has China displaced the outward investments of OECD countries?
As China has rapidly emerged as one of the world's largest investors abroad, there has been a hectic debate in the literature on whether its emergence as a major foreign investor may have undermined the importance of western industrialised economies, including those in the Organisation for Econ...
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| Format: | Article |
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Elsevier
2014
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| Online Access: | https://eprints.nottingham.ac.uk/29135/ |
| _version_ | 1848793722382188544 |
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| author | Yao, Shujie Wang, Pan |
| author_facet | Yao, Shujie Wang, Pan |
| author_sort | Yao, Shujie |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | As China has rapidly emerged as one of the world's largest investors abroad, there has been a hectic debate in the literature on whether its emergence as a major foreign investor may have undermined the importance of western industrialised economies, including those in the Organisation for Economic Cooperation and Development (OECD). This paper aims to investigate whether this is the case. The study uses a panel dataset covering 155 countries, including 33 in the OECD, where China had invested during 2003–09. This is by far the most comprehensive dataset of China's outward foreign direct investment (OFDI). A two-stage least squared (TSLS) regression approach is adopted for our econometric models according to an established augmented gravity model in the literature. The empirical results show clear evidence that China's OFDI displaces that of the OECD countries, but the argument that China's emergence is a ‘new colonialism’ is not supported as OECD countries' OFDI in resource abundant host countries, particularly that in Africa and Latin America, does not appear to have been displaced by China's OFDI. |
| first_indexed | 2025-11-14T19:04:49Z |
| format | Article |
| id | nottingham-29135 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:04:49Z |
| publishDate | 2014 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-291352020-05-04T20:15:16Z https://eprints.nottingham.ac.uk/29135/ Has China displaced the outward investments of OECD countries? Yao, Shujie Wang, Pan As China has rapidly emerged as one of the world's largest investors abroad, there has been a hectic debate in the literature on whether its emergence as a major foreign investor may have undermined the importance of western industrialised economies, including those in the Organisation for Economic Cooperation and Development (OECD). This paper aims to investigate whether this is the case. The study uses a panel dataset covering 155 countries, including 33 in the OECD, where China had invested during 2003–09. This is by far the most comprehensive dataset of China's outward foreign direct investment (OFDI). A two-stage least squared (TSLS) regression approach is adopted for our econometric models according to an established augmented gravity model in the literature. The empirical results show clear evidence that China's OFDI displaces that of the OECD countries, but the argument that China's emergence is a ‘new colonialism’ is not supported as OECD countries' OFDI in resource abundant host countries, particularly that in Africa and Latin America, does not appear to have been displaced by China's OFDI. Elsevier 2014-03 Article PeerReviewed Yao, Shujie and Wang, Pan (2014) Has China displaced the outward investments of OECD countries? China Economic Review, 28 . pp. 55-71. ISSN 1043-951X Outward FDI Displacement Effect China OECD http://www.sciencedirect.com/science/article/pii/S1043951X13001053 doi:10.1016/j.chieco.2013.11.002 doi:10.1016/j.chieco.2013.11.002 |
| spellingShingle | Outward FDI Displacement Effect China OECD Yao, Shujie Wang, Pan Has China displaced the outward investments of OECD countries? |
| title | Has China displaced the outward investments of OECD countries? |
| title_full | Has China displaced the outward investments of OECD countries? |
| title_fullStr | Has China displaced the outward investments of OECD countries? |
| title_full_unstemmed | Has China displaced the outward investments of OECD countries? |
| title_short | Has China displaced the outward investments of OECD countries? |
| title_sort | has china displaced the outward investments of oecd countries? |
| topic | Outward FDI Displacement Effect China OECD |
| url | https://eprints.nottingham.ac.uk/29135/ https://eprints.nottingham.ac.uk/29135/ https://eprints.nottingham.ac.uk/29135/ |