Abstract
On the basis of Dunning's Investment Development Path (IDP) hypothesis, this paper tests the macroeconomic determinants of Chinese Offshore Direct Investment (ODI) from a home-country perspective. We review the recent firm- and country-level studies on determinants of Chinese ODI. We propose a model and test seven home-country macroeconomic variables as determinants of Chinese ODI. Our results reveal that the macroeconomic variables such as interest rate, exchange rate, import and foreign reserve are important determinants of Chinese outward Foreign Direct Investment (FDI).
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