Abstract
Based on Dunning’s OLI framework and the investment development path theory, this paper investigated the determinants of outward FDI by China’s provincial firms. The results show that provincial economic development, innovation and technology, and export to GDP ratio are statistically significant determinants, while FDI inflows, import to GDP ratio and provincial market size are not statistically significant determinants. The results suggest that the main motives for China’s provincial firms to invest abroad are mainly market-seeking and efficiency-seeking.
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