FACTORS DRIVING CHINESE OUTWARD FOREIGN DIRECT INVESTMENT IN NIGERIA.
Abstract
ABSTRACT
China’s outward Foreign Direct Investment (FDI) to Africa has increase greatly over the years. This increase is accompanied by debates as to the factors driving the growth of this investment. This study explored the factors driving Chinese outward FDI in Africa using data on 35 African countries from 2003-2022. Employing ordinary least square and generalized method of moment in addition to second generation cointegration and series stationarity test, the study results show china’s resource imports from Africa, China’s export to Africa, GDP per capita, Africa’s resource endowment and political stability to have a positive and significant impact on corruption level in Africa. The study finds inflation and corruption to have no significant impact on Chinese outward FDI. In line with the findings from the study, policy options were recommended to help improve the level of China’s outward FDI coming to Africa.
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