Publications - Working Papers IER SAS

The goal of the paperwork is to identify and to quantify the determinants of the China's FDI outflow. The financial markets are considered to be an instrument of the power enforcement and comprehension of potential features connected with them, help us to understand China's expansion. The relevant outcomes of the authors dealing with this topic are analysed – the flows and stocks of China's FDI in the investigated period of years 2004 – 2010. In the analysis, 11 indicators are used. There are 2 approaches towards the detection of influents on outward FDI applied in the paperwork. The first one uses the factor analysis, cluster analysis and analysis of variances on the sample of 69 countries. The second approach works with the cluster analysis, which is applied on the basis of data of 85 countries. It is investigated then, which approach allows to identify the determinants of FDI outflows with the higher accuracy. The first approach did not prove the statistically significant difference among the China's FDI in different clusters. The second approach demonstrated the statistical significance in the FDI outflows only in case of one cluster of countries. China's decision on FDI placement is not based
exclusively on the economic assumptions. It is possible to talk about strategic geopolitical reasons that can stand behind the individual investments.