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Overseas Impacts of C hina's Outward Direct Investment
Author(s) -
Wang Bijun,
Mao Rui,
Gou Qin
Publication year - 2014
Publication title -
asian economic policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.58
H-Index - 20
eISSN - 1748-3131
pISSN - 1832-8105
DOI - 10.1111/aepr.12065
Subject(s) - economics , investment (military) , foreign direct investment , suspect , capital (architecture) , monetary economics , macroeconomics , history , archaeology , politics , political science , law
C hina's outward direct investment ( ODI ) has grown rapidly since 2004. But along with such phenomenal growth is a mixed feeling toward C hinese investments in host countries. This article explores some overseas impacts of C hinese ODI based on an analysis of C hina's policy environment and investment patterns. We argue that what C hinese investors bring to host economies includes (i) massive job creation, but limited technology transfers to the local economy; (ii) ample capital as well as entry into the C hinese market; and (iii) damage from corporate social misbehavior. However, we suspect that these overseas impacts may be transitory as three dynamics, increased conflicts, accelerated learning and C hina's domestic structural changes, are simultaneously set in motion.