CHINA OFDI

The Determinants of China outward foreign direct investment

By

Table of Contents

CHAPTER 01: INTRODUCTION1

1.1 Outline of the study1

1.2Background of the study1

1.3Rationale of the study2

1.4Research aims and objectives2

1.5Ethical considerations3

1.6Time scale3

CHAPTER 02: LITERATURE REVIEW5

2.1 Foreign direct investment5

2.1.1Inward foreign direct investment6

2.1.2Outward foreign direct investment6

2.2Descriptive overview of Chinese FDI6

2.3Determinants of Chinese outward FDI8

2.4Impact of Chinese outward FDI10

CHAPTER 03: METHODOLOGY12

3.1 Research design12

3.1.1Secondary research12

3.2Research philosophy12

3.3Research procedure13

3.3.1Qualitative research13

3.4Literature search14

References15

CHAPTER 01: INTRODUCTION

1.1 Outline of the study

The following thesis proposal is based on the topic “The determinants of Chinese outward foreign direct investment”. The first chapter of the thesis will demonstrate and provide details on the introduction to the topic which will also highlight the aims and objectives and background of the study. The second chapter of the thesis will provide a detailed review of the literature and previous studies. The literature review will explain and emphasize on the previous research done in the specific field. The chapter of literature review will illustrate and provide information regarding the determinants of Chinese outward foreign direct investment. The third chapter of thesis will explain the methodology of the proposed study. The fourth chapter of the thesis will analyze and examine the findings and discussion will be provided. The fifth chapter will provide conclusion (Neuman, 2005, pp 112)

Background of the study

Foreign direct investment is defined as the investment in the production sector of the country from another company which is located in some other country. The company can invest either by buying in the target country or through expansion of various business operations in the specific country. The foreign direct investment is done for various purposes. The primary reason is to take advantage of the low wages in the country and other tax exemptions offered by the country (Paul, 2003, pp 47)

Outwards foreign direct investment from china has increased tremendously in the last few years. It has been providing its FDI to developing countries all across the globe. The outward FDI of china began in the period of 1970s and was introduced with the open door policy. The data based on the FDI of china is very much consistent with IMF standards. Moreover china is considered as one of the third largest investor in many foreign countries (Buckley, 2004, pp 15)

There are many determinants and factors which influence the outward FDI of china to other developing nations. The flow of outwards foreign direct investment of china is influenced by many factors which include political risks, cultural proximity, the market size and the geographic location of the countries (Casson, 1981, pp 82)

Rationale of the study

It has been evident from many studies that china is integrating with the global economy and its outward foreign direct investment has picked up in the last few years. Moreover, the outwards flow of foreign direct investment of china has caught media attention and today china is considered a significant source of foreign direct investment. In the last few years, china was also one of the developing economies which had less capital and foreign exchange to prosper and increase their ...