AbstractsEconomics

The Political Economy of Going Global: Understanding the Determinants of Chinese Foreign Direct Investment in the Middle East and Africa

by Majid Shirali




Institution: University of Nevada – Las Vegas
Department:
Year: 2015
Keywords: Africa; China; Foreign Direct Investment; International Relations; Middle East; Political Economy; Business; Economics; Political Science
Posted: 02/05/2017
Record ID: 2113693
Full text PDF: http://digitalscholarship.unlv.edu/thesesdissertations/2428


Abstract

This study seeks to explain the motivating factors behind Chinese foreign direct investment (FDI) patterns to the Middle East and Africa through a quantitative framework that utilizes a pooled cross-sectional time-series data set that covers 57 countries from 2003-2010. Prior research on the issue has hypothesized that China attempts to use external FDI to developing areas to promote national interests and help sustain economic growth. However, there has been an almost exclusive focus on economic determinants while generally ignoring political variables. The approach in this project attempts to fill this scholarly void by employing a broad array of independent variables that account for both economic and political influences in producing a timely model that yields robust results that will allow for generalizable statements to be made regarding the data. The findings demonstrate that pre-existing trade relations and strategically important natural resources (oil, ores, and metals) within host economies influence Chinese FDI to the Middle East and Africa. In addition, the study empirically shows that external FDI from China was heavily concentrated in economies with lower per capita income and directed toward regimes that may be classified as mildly authoritarian. The dissertation concludes with an analysis of larger policy implications and suggestions for future scholarly inquiry. Advisors/Committee Members: John Tuman, Jonathan Strand, Dennis Pirages, John Curry.