Abstract
Since 2000s China's outward foreign direct investment (OFDI) in developed economies has grown rapidly, boosting the technological advancement of Chinese companies and the advancement of global value chains. In the context of the United States continuing to impose investment restrictions on China, the EU has an important position in the OFDI pattern in China. Although China's OFDI in the EU has maintained rapid growth overall, the location distribution is not balanced. This paper uses spatial measurement method to test China's spatial pattern change of OFDI in EU member states and finds that there are spatial agglomeration effects and spatial spillover effects. The spatial panel analysis method is used to test the factors affecting the spatial distribution China's OFDI in EU. It is found that the market size, technology level and investment freedom of the host country have positive effects on the location selection of China's OFDI in EU.
Highlights
In recent years, unilateralism and counter-globalization have grown stronger, causing a greater impact on global economic growth, trade and investment
This paper makes a comparative analysis of the growth and location distribution characteristics of China's outward foreign direct investment (OFDI) in the EU and explains the imbalance of China's OFDI distribution in different regions of the EU
China’s investment in the EU has obvious regional differences between “Western High East” and “Northern Strong South”; China’s OFDI concentration on the EU is very high, and the UK, Germany and France are very stable top three, the Netherlands is super M&A has leapt to the top in recent years, and Luxembourg has a place in the special status of tax havens
Summary
Unilateralism and counter-globalization have grown stronger, causing a greater impact on global economic growth, trade and investment. In this context, global foreign direct investment (FDI) fell by 23% in 2017 to $1.43 trillion. From the perspective of China's spatial distribution of OFDI in Europe, there is a big difference in investment flows and stocks in different countries. Based on the study of China's evolution of the spatial and temporal distribution of OFDI in the EU, this paper uses spatial economic statistics to analyze its factors. After reviewing the literature on basic issues, a detailed analysis of China's growth in OFDI in Europe and changes in spatial distribution over time will be conducted. Using the panel data of China's OFDI in various countries from 2007 to 2016, an empirical analysis model is established to deeply study the factors affecting the distribution of China's OFDI in Europe
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