The determinant of Chinese foreign direct investments in oil exporting African countries
Document Type
Article
Publication Date
7-1-2022
Abstract
The observed presence of China in the top 18 oil/minerals exporting countries in Africa warrants special interest, as the engagement has extended considerably to appear as an influential, hitherto questionable, South-South cooperation. In this study, the determinants of China's Foreign direct investment (FDI) stock and flow from 2003 to 2017 is examined using Ordinary least squares (OLS), generalized least squares (GLS) and Instrumental Variable 2-Stage Least Squares techniques. The results indicate that oil/minerals and agricultural imports facilitate more FDI, and political instability spurs more FDI. Overall, this study recommends that policymakers should enhance trade policies to improve the sustainability of China-Africa engagement.
Keywords
China-Africa, Foreign direct investment, Institutions, Oil, Minerals, Trade
Divisions
Faculty_of_Business_and_Accountancy
Funders
Tertiary Education Trust Fund [Grant No: TETF/DR&D/COE/ILORIN/IBR/2020/VOL]
Publication Title
Contemporary Economic Policy
Volume
40
Issue
3
Publisher
Wiley
Publisher Location
111 RIVER ST, HOBOKEN 07030-5774, NJ USA